Which of the following financial statements is designed primarily for internal use of the corporation managers (e.g., the production manager)?
A) Income statements
B) Statement of retained earnings
C) Budget
D) Balance sheets
E) Statements of cash flow

Question

Quizplus · Accepted Answer

A budget is a financial statement that outlines a company's estimated revenues and expenses for a specific period. It is designed primarily for internal use by the corporation managers and is used to plan, control, and coordinate operations. Income statements, balance sheets, and statements of cash flow are generally prepared for external users such as investors, creditors, and regulatory agencies. The statement of retained earnings is a financial statement that shows how much of the company's earnings were retained in the business after payment of dividends and is also typically prepared for external users.

Which of the Following Financial Statements Is Designed Primarily for Internal