The budgeted income statement:
I. Accumulates information from the supporting budgets
II. Is based only on last year's income statement
III. Is prepared a few weeks before the actual income statement is prepared for the period
A) I only
B) I and III only
C) II only
D) II and III only

Question

Quizplus · Accepted Answer

The budgeted income statement is a forward-looking financial statement that accumulates information from various supporting budgets, such as sales, production, and expense budgets, to project future income. It is not based solely on last year's income statement, nor is it prepared just before the actual income statement for the period.

The Budgeted Income Statement