Question

Definitions Terms

1. Employees affected by a budget help in preparing it.
2. Planning future business actions and expressing them as formal plans.
3. A comprehensive business plan that includes operating, investing, and financing budgets.
4. Summarizes the effects of investing activities on cash.
5. Shows expected cash inflows and outflows and helps determine financing needs.
6. An approach that requires all expenses to be justified for each new budget.
7. A formal statement of future plans, usually expressed in monetary terms.
8. Approach in which top management passes down a budget without employee input.

Answer 1

1. Employees affected by a budget help in preparing it. - PARTICIPATORY BUDGETING.

2. Planning future business actions and expressing them as formal plans. - BUDGETING.

3. A comprehensive business plan that includes operating, investing, and financing budgets. - MASTER BUDGET.

4. Summarizes the effects of investing activities on cash. - CAPITAL EXPENDITURE BUDGET.

5. Shows expected cash inflows and outflows and helps determine financing needs. - CASH BUDGET.

6. An approach that requires all expenses to be justified for each new budget. - ZERO-BASED BUDGET.

7. A formal statement of future plans, usually expressed in monetary terms. - BUDGET

8. Approach in which top management passes down a budget without employee input. - TOP-DOWN BUDGETING.