Preparation of a budgeted income statement does not require:
A) Estimates of cost of goods sold.
B) Estimates of the timing of cash receipts and payments.
C) Preparation of a sales forecast.
D) Anticipation of operating expenses.

Question

Quizplus · Accepted Answer

Preparation of a budgeted income statement requires estimates of cost of goods sold, preparation of a sales forecast, and anticipation of operating expenses. However, it does not require estimates of the timing of cash receipts and payments. That information is needed for the preparation of a cash budget.

Preparation of a Budgeted Income Statement Does Not Require