Operating budgets and financial budgets:
A)combined form the master budget
B)are prepared before the master budget
C)are prepared after the master budget
D)have nothing to do with the master budget

Question

Quizplus · Accepted Answer

Operating budgets and financial budgets are sub-budgets that form the master budget, which is an overall plan for the organization's financial activities. Therefore, A is the correct choice. B is incorrect because operating and financial budgets are typically prepared as part of the master budget process. C is also incorrect because the operating and financial budgets are typically integrated into the overall master budget. D is incorrect because operating and financial budgets are essential components of the master budget.

Operating Budgets and Financial Budgets