posted by Cynthia on .
Which one of these categories would most likely be found in the operating budget of a day care center?
A. Tables and chairs for classroom
B.Desks and chairs for the office
C. Deposits for utility services
D. Loan payments
I chose the letter C. Can someone check my answer.
I don't know about deposits for utility services. If "deposits" mean payments for recurring utility costs, then yes. But my experience is that deposits are not recurring, deposits are fees required when changing or initiating services, so normally would not be an operating expense, but associated with a capital renovation or building cost.
Thus, Loan payments to pay off loans for the land, equipment, or building could be easily part of the operating budget, even though many folks budget those in an a capital recovery line item, outside of the operating budget.
So maybe you are right, maybe wrong. The C and D wording is not clear to me.