A Budget That Is Developed Around One Particular Level of Activity

question 55

Multiple Choice

A budget that is developed around one particular level of activity is

• A) a static budget.
• B) a continuous budget.
• C) an incremental budget.
• D) none of these.

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Definitions:

Withdrawals

Funds taken out from a business by the owner(s) for personal use, affecting the owner's equity account.

Owner's Equity Statement

A financial document that details the changes in the owner’s equity of a business over a period of time, including investments, withdrawals, and net income.

Worksheet

A document used by accountants to organize and summarize financial information for the preparation of financial statements.