1. Which of the following statements is true of the operatingbudget?

A. It includes the capital expenditures budget.

B. It is a part of the financial budget.

C. Its final component is the cash budget.

D. It includes the sales budget.

2. Which of the following statements is true of the capital expendituresbudget?

A. It includes the sales budget.

B. It is a part of the financial budget.

C. It must be completed before the cash budget is prepared.

D. It must be completed after the budgeted income statement is prepared.