1.Describe the budgeting process and the benefits it provides.
2. What is the difference between a static budget and a flexible budget? When is each used?

3. What are three reasons that cash is worth more today than cash to be received in the future?
4. It does not matter the size of a business; it engages in different types of transactions. Identify these types of transactions and explain each. Refer to chapter two for transaction classification.

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