Which of the following statements is true of the operating budget?

Question

Quizplus · Accepted Answer

The operating budget does include the sales revenue budget as it is used to estimate the expected sales for the upcoming period. Option A is incorrect as the operating budget is a separate component of the master budget and not a part of the financial budget. Option B is also incorrect as the capital expenditures budget is a separate component of the master budget. Option D is partially correct as the cash budget is the last component of the operating budget but not the final component of the entire master budget.

Which of the Following Statements Is True of the Operating