An individual's cash budget differs from a firm's income statement because

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An individual's cash budget determines the generation of cash, whereas a firm's income statement shows profits and losses over a period of time. A cash budget is constructed for a specific period of time, usually a month or a year, whereas an income statement shows a company's financial performance over a quarter or a year. Common stocks and retirement contributions are not typically included in either an individual's cash budget or a firm's income statement.

An Individual's Cash Budget Differs from a Firm's Income Statement