In Accounting, ________ Cover the Annual Cost of Running the Business

question 1

Multiple Choice

In accounting, ________ cover the annual cost of running the business.

• A) operating budgets.
• B) capital budgets.
• C) tactical budgets.
• D) hardware and software budgets.
• E) IT budget.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Inventory

The total value of a company's raw materials, work-in-progress, and finished goods that are considered assets on a balance sheet.

Account Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.