Harry Haddock is the Chief Financial Officer of a small construction company and has just been presented with the sales budget and other cost budgets. He uses this information to develop a forecast of the firm's net income for the next year. In this scenario, Harry is reviewing the company's:
A) cash budget.
B) budgeted income statement.
C) cash flow budget.
D) budgeted balance sheet.

Question

Quizplus · Accepted Answer

Harry is reviewing the sales budget and other cost budgets to develop a forecast of the firm's net income, which indicates that he is reviewing the budgeted income statement. The cash budget focuses on cash inflows and outflows, the cash flow budget is a more detailed version of the cash budget, and the budgeted balance sheet presents a forecast of the company's assets, liabilities, and equity position at a specific point in time.

Harry Haddock Is the Chief Financial Officer of a Small