The Most Widely Used Approach to Budgeting Operating Expenditures Is

question 34

Multiple Choice

The most widely used approach to budgeting operating expenditures is

• A) Zero-base.
• B) Performance approach.
• C) Object-of-expenditure.
• D) Program and planning-programming-budgeting.

---

Definitions:

Operating Activities

The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

Bad Debts Expense

Represents the recognition of accounts receivable that are not expected to be collected.

Non-Current Assets

Assets owned by a company not expected to be converted to cash or used within the business's operating cycle or fiscal year.

Investing Cash Flows

Part of the cash flow statement that shows the cash spent on and received from investment activities, including assets purchases and sales.