In order to prepare a budgeted income statement,several other budgets need to be prepared first.Which of the following is NOT one of the budgets needed to prepare the budgeted income statement?
A) Sales
B) Electricity and gas
C) Capital expenditures
D) Inventory, purchases and cost of sales

Question

Quizplus · Accepted Answer

The budgets needed to prepare the budgeted income statement include the sales budget, the budget for electricity and gas, and the inventory, purchases and cost of sales budget. Capital expenditures are not directly related to the calculation of revenue or expenses on the income statement, so this budget is not necessary for its preparation.

In Order to Prepare a Budgeted Income Statement,several Other Budgets