Question : The process of preparing a budget that covers multiple years is known as:
Option 1: Long-term budgeting
Option 2: Multi-year budgeting
Option 3: Biennial budgeting
Option 4: None of the above
Correct Answer: Multi-year budgeting
Solution : The correct answer is (b) Multi-year budgeting.
Multi-year budgeting is the process of preparing a budget that covers multiple years, typically beyond the traditional annual budgeting cycle. This approach allows governments and organizations to plan and allocate resources for a longer period, often spanning three to five years or more. Multi-year budgeting helps improve long-term planning, provides stability and predictability, and allows for better assessment of the financial implications of policies and projects over an extended period.
Question : The practice of presenting the government budget in two parts, revenue and capital, is known as ____________.
Option 1: Dual budgeting
Option 2: Zero-based budgeting
Option 3: Performance budgeting
Option 4: Gender-responsive budgeting
Question : A government budget that is balanced over the long term is called:
Option 1: A stable budget
Option 2: A dynamic budget
Option 3: A cyclically balanced budget
Question : Which of the following is not a type of term loan?
Option 1: Short-term loan
Option 2: Medium-term loan
Option 3: Long-term loan
Question : Which feature of capital market is highlighted in the given statement? Statement:In the market transactions are made in the long term securities.
Option 1: Long term securities
Option 2: Long term financing requirement
Option 3: Creating liquidity
Question : Which of the following statement is incorrect for capital budgeting decisions?
Option 1: The decisions have long term implications for the firm.
Option 2: These decisions involve large amount of funds.
Option 3: It involves less amount of risk.
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