Which of the Following Types of Budgets Plot Anticipated Sales

question 215

Multiple Choice

Which of the following types of budgets plot anticipated sales or revenues against expenses?

• A) zero-based budgets
• B) nonmonetary budgets
• C) financial budgets
• D) operating budgets
• E) fixed budgets

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Definitions:

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is often deductible for the borrower for tax purposes.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.