The budgeted income statement________.

Question

Quizplus · Accepted Answer

The budgeted income statement is accrual-based, meaning it recognizes revenues when earned and expenses when incurred, regardless of when cash is received or paid. This is in contrast to a cash-based approach, which would only record transactions when cash changes hands. Choices A, B, and D are incorrect because the budgeted income statement does not report cash transactions directly (A), it does not include cash and capital expenditures budgets as these are part of the cash budget and capital budget respectively (B), and it does include depreciation expense as part of its expenses (D).

The Budgeted Income Statement________