The management of Normanster Corp., a multinational company, is in the process of preparing the operating budget for the company. It has already created the sales budget and the production budget. It is now creating a financial statement that would present a forecast of the expected revenue of the company from the projected sales. In the given scenario, the management is creating _____.
A) a budgeted income statement
B) a profit and loss statement
C) the capital expenditure budget
D) the cash budget

Question

Quizplus · Accepted Answer

The management is creating a budgeted income statement, which forecasts expected revenue and expenses, resulting in projected net income.

The Management of Normanster Corp