Which type of budget accounts for both revenue and expenditures associated with the day-to-day functions of a department or organization?

Question

Quizplus · Accepted Answer

An operating budget includes the revenue and expenses that are associated with the daily operations of the organization or department. This type of budget is used to forecast and manage cash flow and to ensure that there are sufficient funds available to cover expenses such as salaries, rent, utilities, and other operating costs. Option B, capital budgets, are used to account for long-term investments in assets such as property, equipment, and technology. Option C, construction budgets, are utilized to account for construction projects and their associated costs. Option D, accounting budgets, refer to budgets allocated for the accounting department of an organization.

Which Type of Budget Accounts for Both Revenue and Expenditures