What Does Budgeted Operating Income Include

question 34

Multiple Choice

What does budgeted operating income include?

• A)budgeted interest expense
• B)budgeted income taxes
• C)budgeted cost of goods sold
• D)budgeted net income

---

Definitions:

Base Amount

The initial value or standard measure that is used as a reference point for calculations, comparisons, or adjustments.

Acid-test Ratio

The acid-test ratio is a financial metric used to assess a company's ability to pay off its short-term liabilities with its most liquid assets, excluding inventory.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a year or the operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due to be paid within one year, such as accounts payable, short-term loans, and taxes owed.