Which of the Following Is Not True About Budgeting

question 33

Multiple Choice

Which of the following is not true about budgeting?

• A)It is a formal method of detailed financial planning.
• B)It is used to help a company reach long-term and short-term objectives.
• C)It aids in the efficient use of resources.
• D)All of the above are true.

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Definitions:

Line Of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw down, repay, and reborrow funds up to a specified credit limit.

Leverage

The use of borrowed funds to increase one's investment capacity and potentially enhance the rate of return, also referring to influencing factors or the ability to influence outcomes.

Borrowing Money

The act of obtaining funds from lenders under the agreement to repay with interest within a specified timeframe.

Increases Equity

An action or event that raises the value of an owner's shares in a company or property.