Which of the following budgets is not an operating budget?
A) Sales budget.
B) Cash budget.
C) General and administrative expense budget.
D) Selling expenses budget.
E) Production budget.
Ans: The correct option for the answer is option B i.e. Cash budget
As Cash budget is a budget which contains inflows and outflows of cash i.e. expense paid , revenue earned and collected ,loan receipts and payments.It is an estimated projection of company cash position for future.
An operating budget is a budget which consists of revenues and expenses over a period of time. It always prepare in advance so as to forecast a goal or plan that the business expects to achieve and other four options i.e. General and administrative expense budget, selling expense budget, sales budget and production budget are components of it. Generally we cant predict about cash budget as it records the actual result and other budgets are prepare in advance so as to achieve the targets
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