Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is the key characteristic of the General Operating Budget?

1. It covers a multi-year forecast

2. It focuses solely on income

3. It anticipates income and expenses for a specified time

4. It only details costs

The correct answer is: It anticipates income and expenses for a specified time

The key characteristic of the General Operating Budget is that it anticipates income and expenses for a specified time frame. This budget serves as a financial plan that outlines the projected revenues and costs associated with operating a business or organization. By detailing both income and expenses, it provides a comprehensive view of the financial health and operational expectations for the upcoming period, usually covering a single fiscal year. A budget capturing multiple years, while valuable for long-term planning, is not characteristic of the General Operating Budget, which is typically focused on a single year. Focusing solely on income would ignore significant factors that affect financial stability, such as costs and expenses. Detailing only costs would fail to provide a holistic view of the financial situation, as income is equally crucial for understanding profitability and operational effectiveness. Thus, the correct answer highlights the essence of the General Operating Budget as a tool that balances both anticipated income and expected expenses within a defined time frame.