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

1. Introduction to Accounting

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is an operating budget?

Sales budget

Capital expenditures budget

Cash budget

Budgeted balance sheet

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Verified step by step guidance

Understand the concept of an operating budget: An operating budget is a financial plan that focuses on the day-to-day operations of a business, including revenues and expenses. It typically includes budgets related to sales, production, and other operational activities.

Review the options provided: Sales budget, Capital expenditures budget, Cash budget, and Budgeted balance sheet. Determine which of these aligns with the definition of an operating budget.

Analyze the Sales budget: The sales budget is a detailed projection of expected sales revenue for a specific period. It is a key component of the operating budget because it directly impacts other operational budgets, such as production and expense budgets.

Evaluate the other options: The Capital expenditures budget focuses on long-term investments in assets, the Cash budget deals with cash inflows and outflows, and the Budgeted balance sheet is a financial statement summarizing projected assets, liabilities, and equity. These are not part of the operating budget but are part of the financial or capital budgets.

Conclude that the Sales budget is the correct answer because it is directly related to the operational activities of the business and forms the foundation for other components of the operating budget.