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:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, good, or service.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Gasoline

A volatile flammable liquid derived from crude oil or natural gas, used primarily as fuel in internal combustion engines.

Price Ceiling

a government-imposed limit on how high a price can be charged for a product, service, or commodity, typically to protect consumers from excessive costs.