The budgeted monthly statement of profit or loss is drawn up on the basis of cash received and cash paid while the month-by-month cash budget is drawn up on the accruals basis.

Question

Quizplus · Accepted Answer

The budgeted monthly statement of profit or loss is prepared on an accrual basis, while the cash budget is prepared on a cash basis, focusing on actual cash inflows and outflows.

The Budgeted Monthly Statement of Profit or Loss Is Drawn