Question

Of the following items, which one is not obtained from an individual operating budget?

A) Selling and administrative expenses
B) Accounts receivable
C) Cost of goods sold
D) Sales

Answer 1

Accounts receivable is not obtained from an individual operating budget because it is found on a company's balance sheet and represents money owed by customers, not day-to-day operational expenses.

Step-by-step explanation:

The question at hand is asking which item is not obtained from an individual operating budget. The correct answer is B) Accounts receivable. An operating budget typically includes estimated sales, cost of goods sold, and selling and administrative expenses. Accounts receivable, however, is related to the amount of money owed by customers for goods or services delivered or used but not yet paid for. This item would be found on a company's balance sheet, rather than its operating budget, which is more concerned with revenues and expenses associated with day-to-day operations.