ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Cash flow planning is intended to ensure that a business has enough money set aside to deal with any potential unexpected expenses. Knowing exactly how much money is available is vital in ensuring that your company is both solvent enough to cope with any and all outgoings, while also avoiding a negative cash flow.
Detailed explanation-2: -Gross profit is the money left over after a company’s costs are deducted from its sales. Gross margin is a company’s gross profit divided by its sales and represents the amount earned in profit per dollar of sales. Gross profit is stated as a number, while gross margin is stated as a percentage.
Detailed explanation-3: -Cash Flow Statement: A record that summarizes all of the income and outgo (spending) over a certain time period. 20.
Detailed explanation-4: -An overdraft occurs when a transaction causes your checking account balance to drop below zero. Your bank or credit union will choose whether to reject or cover the transaction. If they cover the transaction, you may be charged an overdraft fee.