Identify Each Item as Either Part of the Operating Budget

question 46

Multiple Choice

Identify each item as either part of the operating budget or the financial budget.
-budgeted capital expenditures

• A)Operating Budget
• B)Financial Budget

---

Definitions:

Financial Accounting

The field of accounting that focuses on the summary, analysis, and reporting of financial transactions pertaining to a business to external users.

Managerial Accounting

The area of accounting focused on providing financial data and advice to company managers for decision-making purposes.

GAAP

Generally Accepted Accounting Principles encompass a series of standard accounting practices and rules for the creation of financial reports.

Financial Accounting

The field of accounting that focuses on providing information to external users such as investors, creditors, and regulators, primarily through financial statements.