Explain the difference between long- and short-term budgeting. | Homework.Study.com (2024)

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• Explain the difference between short-term and long-term investments. Cite examples of each.
• What are the short, medium, and long term modes of financial planning?
• Define and explain zero-based budgeting.
• (a) What is long-term versus short-term debt? (b) Why is this distinction important on the balance sheet?
• Describe the advantages of budgeting.
• Explain the differences between current and long-term assets and liabilities.
• What is zero-based budgeting? Explain.
• Explain the difference between top-down and bottom-up budgeting; give the pros and cons of each.
• What is a budget? How does this differ from a long-term plan? Which do you think is more important to do if you can only prepare one of them?
• What are the major benefits of budgeting? Explain.
• How do strategic planning, long range planning and budgeting differ? Explain your answer.
• Define the following term: Cash budget.
• What are the advantages and disadvantages of zero-based budgeting?
• What are the advantages of budgeting?
• What is capital budgeting? Explain in your own words.
• What is the difference between a flexible budget and a planning budget?
• Identify and briefly explain two (2) types of Non-Financial Budgets.
• Explain in detail 'Incremental Budgeting' and 'Zero based Budgeting' and a combination of these two.
• What is zero-based budgeting and how does it compare to traditional budgeting?
• What is the benefit of continuous budgeting?
• Describe the differences and similarities between current and long-term liabilities. Provide examples of each.
• Explain the difference between an incremental budget system and a zero-based budget system.
• (a) Explain the advantages a company may derive from budgeting. (b) Explain the limitations of budgeting.
• Distinguish between current and long-term liabilities.
• What is the difference between a master budget and a responsibility budget?
• Explain the difference between a current and a long-term liability.
• Describe the limitations of budgeting.
• What are the disadvantages of budgeting?
• How does short-term financing differ from long-term financing? Give two business uses for each type of financing.
• Why is it important to classify liabilities into short-term and long-term? Include examples of short and long-term liabilities in your response. Explain in detail.
• Define the term expenditure.
• What are 2 key benefits of budgeting?
• What are the primary benefits of effective budgeting?
• Explain how to get cash in short term bank debt from the balance sheet.
• Under which budgeting approach would flexible budgets more likely be used, and why?
• Define cash budget and mention some of its advantages.
• Briefly explain the term of Static budget?
• Define the following: Zero-based budgeting.
• What is budgeting and why is it important?
• Define the following term: Capital Expenditure Budget.
• Briefly differentiate between financial and managerial accounting.
• What is the difference between standard costing and budget?
• Explain the difference between current liabilities and long-term liabilities. Under what circ*mstances could a current liability be classified as a long-term liability?
• Explain how to identify whether each investment should be classified as a short-term or long-term investment.
• Explain the significance of financial planning.
• What are the objectives of budgeting? What are some of the advantages of an effective budgeting process?
• What is budgeting? Why is it important? Describe one type of budget and how it would be utilized in a business.
• How does the economy's behavior in the short run differ from its behavior in the long run?
• What distinguishes a short-term liability from a long-term liability?
• How do current liabilities differ from long-term liabilities?
• (a) Define a budget. (b) How does management use budgets?
• (a) Explain the incremental and zero-based approaches to budgeting. (b) Briefly outline the key advantages and disadvantages of each. (c) Is one approach better than the other? (d) Is one approach more commonly used than the other?
• Explain what types of liabilities are classified as general long-term liabilities.
• a) Discuss the similarities and differences between static and flexible budgeting and capital budgeting. b) Why is budgeting important to an organization?
• Explain the difference between a capital expenditure and a revenue expenditure. Also, give an example of each and explain the difference in the method of accounting for each expenditure.
• Explain how are short term liabilities reported on a balance sheet.
• What are long-term liabilities? Give some examples.
• State two disadvantages of participative budgeting.
• Explain the advantage of using a flexible budget.
• Is CVP analysis more focused on the short term or the long term? Explain.
• Define and explain budget lapsing.
• Explain the Principal Budget Factor and its importance.
• Explain the difference between participative and non-participative budgeting and explain their advantages and disadvantages.
• What makes current liabilities different from long-term liabilities?
• What is the difference between budget lapsing and line-item budgets?
• What are the advantages and disadvantages of long-term debt financing?
• What are the key characteristics of an effective budgeting system?
• Explain the key requirements for successful budgeting.
• Distinguish between a current liability and a long-term debt.
• Describe three advantages of budgeting. Which advantage of the three that you described is the most advantageous and why?
• What are long-term liabilities, and how does it work with balance sheets? Provide examples.
• What is continuous budgeting?
• Develop a personal cash budget for the next six months. Explain what you would do if there are budget shortfalls or excess cash amounts at the end of any month during the six-month period.
• What are the advantages of flexible budgeting over the static budgets?
• Explain the difference between planning and controlling.
• Explain the term fiscal year.
• Is the cash budget prepared before the sales budget? Explain.
• List and describe four potential advantages of budgeting and four potential disadvantages of budgeting.
• What is the value of budgeting?
• What is the difference between short-run business decisions and long-run strategic plans?
• Discuss the characteristics of long-term liabilities.
• What is the difference between a static and flexible budget? How are flexible budgets prepared?
• How does CVP analysis assist management with short-term economic planning?
• Describe the four capital budgeting methods. How would you determine which one to use?
• What is the difference between the corresponding static budget and flexible budget amount called?
• Explain the similarities and differences between standards and budgets.
• Describe the differences between managerial and financial accounting.
• Why is it useful to report short-term liabilities separately from long-term liabilities when preparing the balance sheet?
• Why is it important to separate current from long-term liabilities?
• Explain how budgeting helps in running a business efficiently and effectively.
• Define participative budgeting and discuss its potential benefits and drawbacks.
• What is the difference between a static budget and a flexible budget?
• State two advantages of participative budgeting.
• What are the advantages and disadvantages of budget control?
• What are three main characteristics of liabilities, and why is it important to classify liabilities into short-term and long-term? Include examples of short and long-term liabilities in your response. Answer in one page.
• Describe and explain the differences between management accounting and financial accounting.
• Distinguish between current and long-term assets.
• How does human behavior relate to budgeting?
• What are the differences between fixed and flexible budgets?
• Why budgeting is important for every kind of organization?