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 sales forecast.
D)Anticipation of operating expenses.

Question

Quizplus · Accepted Answer

Budgeted income statement requires estimates of cost of goods sold, preparation of sales forecast and anticipation of operating expenses, but does not require estimates of the timing of cash receipts and payments. The timing of cash receipts and payments is important for preparing a cash budget, not an income statement.

Preparation of a Budgeted Income Statement Does Not Require