The operating budgets project the collection and payment of cash, as well as forecast the company's budgeted balance sheet.

Question

Quizplus · Accepted Answer

Operating budgets primarily focus on the income statement components such as revenues and expenses, and do not directly project cash collections, payments, or forecast the budgeted balance sheet. Those aspects are covered by the cash flow budget and the financial budget, respectively.

The Operating Budgets Project the Collection and Payment of Cash