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Which of the following is a statement that projects income and/or expenditures over a specified future period?

a. capital budget
b. balance sheet
c. statement of cash flows
d. operating budget

User DANG Fan
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Final answer:

An operating budget is a statement projecting income and expenditures for a future period, and it is used to manage financial activities, anticipate a budget surplus or deficit based on revenue and spending plans. The statement that projects income and/or expenditures over a specified future period is the d. operating budget.

Step-by-step explanation:

The statement that projects income and/or expenditures over a specified future period is the d. operating budget. An operating budget details an organization's projected revenues and expenses for a specific time period, often a fiscal year, which aligns with the concepts of receipts and expenditures. It reflects the expected financial performance based on the organization's planned income-generating activities and anticipated costs.

Government budgets, including the federal budget, anticipate both receipts (revenue from taxes and other sources) and expenditures (outlays on various programs and operations). A budget deficit occurs when expenditures exceed revenue for a fiscal year, leading to the need for the government to borrow money to cover the shortfall, whereas a budget surplus indicates that revenue is higher than spending.

User TerenceJackson
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