Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Operating Activities: Indirect Method

Financial Accounting

13. Statement of Cash Flows

Operating Activities: Indirect Method

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is typically included in the operating budgets of a company?

Dividend distribution schedule

Cash receipts from financing activities

Sales budget

Capital expenditures budget

Previous problemNext problem

Verified step by step guidance

Understand the concept of operating budgets: Operating budgets are financial plans that focus on the day-to-day operations of a company, typically including revenues and expenses related to core business activities.

Identify the components of operating budgets: These budgets often include items such as the sales budget, production budget, direct materials budget, direct labor budget, and overhead budget. They are distinct from financial budgets, which focus on financing and investing activities.

Analyze the options provided: Dividend distribution schedule and cash receipts from financing activities are part of financial budgets, not operating budgets. The capital expenditures budget is part of the investing budget, which is also not included in operating budgets.

Focus on the sales budget: The sales budget is a key component of operating budgets because it forecasts the expected revenue from sales, which serves as the foundation for other operational planning, such as production and inventory management.

Conclude that the correct answer is the sales budget, as it aligns with the purpose and scope of operating budgets, which are centered on the company's core operational activities.