Identify Each Item as Either Part of the Operating Budget

question 61

Multiple Choice

Identify each item as either part of the operating budget or the financial budget.
-budgeted balance sheet

• A)Operating Budget
• B)Financial Budget

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Definitions:

Services Provided

Activities done for others as an economic product that are intangible, not stored, and produced at the time of consumption.

Unearned Ticket Revenue

Money received from ticket sales before the event has occurred, classified as a liability until the service is performed.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Prepaid Rent

An expense recorded before it is actually paid, representing rent payments made in advance of the period to which they relate.