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:

Call Premium

The amount by which the call price of a bond or preferred stock exceeds its face value or issue price.

Par Value

The face value of a bond or stock as stated by the issuing company, typically not indicative of market value.

Call Price

The price at which a callable bond or security can be redeemed by the issuer before its maturity.

Negative Covenants

Provisions in a loan agreement that restrict certain actions of the borrower to protect the lender's interests.