Identify Each Item as Either Part of the Operating Budget

question 15

Multiple Choice

Identify each item as either part of the operating budget or the financial budget.
-ending finished goods inventory budget

• A)Operating Budget
• B)Financial Budget

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Definitions:

Prepaid Insurance Expense

A current asset account that represents prepayments for insurance coverage, which will be expensed over time as the insurance coverage expires.

Expenses

Costs incurred by a business in the process of earning revenue, often categorized as operating or non-operating.

Mixed-Attribute

A term not widely recognized as a standard financial or accounting term and requires further context for accurate definition. NO.