Which of the Following Statements Is TRUE About the Operating

question 145

Multiple Choice

Which of the following statements is TRUE about the operating budget?

• A) It is a part of the financial budget.
• B) It includes the capital expenditures budget.
• C) It includes the operating expenses budget.
• D) Its final component is the cash budget.

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Definitions:

Subscriber

An investor who agrees to purchase stock in a new corporation.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and typically the right to vote on corporate matters.

Debt

Debt is an amount of money borrowed by one party from another, typically with the arrangement that it will be paid back, often with interest.

De Jure Corporation

A corporation that has fully complied with all legal requirements for incorporation and therefore enjoys all the powers and rights granted to corporations under the law.