A Budget That Is Continually Updated by Periodically Adding a New

question 70

Multiple Choice

A budget that is continually updated by periodically adding a new incremental time period such as a quarter, and dropping the period just completed is a

• A) short-range budget.
• B) long-range budget.
• C) capital budget.
• D) rolling budget.

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Definitions:

Capital Expenditures

Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its business operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Free Cash Flow

The amount of cash generated by a business after accounting for operating expenses and capital expenditures, available for distribution among shareholders.

Interest Expense

The cost incurred by an entity for borrowed funds, typically stated as an annual rate.