Which of the Following Alternatives Reflects the Proper Order of Preparing

question 199

Multiple Choice

Which of the following alternatives reflects the proper order of preparing components of the master budget? 1. Financial budget
2) Operating budget
3) Capital expenditures budget

• A) 2, 3, 1
• B) 1, 3, 2
• C) 1, 2, 3
• D) 3, 1, 2

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Definitions:

General Partnership

A business structure where two or more individuals share ownership, as well as the responsibilities and liabilities of the business.

Limited Partnership

A partnership structure where one or more partners have limited liabilities, not exceeding their investment, while at least one partner has unlimited liability.

Limited Partners

Investors in a partnership whose liability is limited to the amount of their investment in the partnership.

Limited Liability

A legal structure that limits the personal financial liability of the owners or shareholders of a company to the amount that they have invested.