A budgeted income statement shows the projected resources and obligationsof a firm over a specific time period. 

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A financial plan serves as the roadmap for a business organization *

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A budget is a qualitative plan for a business organization. 

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The money market involves trading of securities with maturities of one year or less while the capital market involves the buying and selling of securities with maturities for more than one year. 

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Credit unions are the largest type of financial intermediary handling individual savings. *

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Commercial banks obtain most of their funds from borrowing in the capital markets. *

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When an entity’s net working capital is positive, current liabilities exceed current assets.*

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When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that expected to maximize shareholder value. *


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High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price.*

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Projection of the firm’s operation results, along with short-term resourceneeds form part of a short-term financial plan. *

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