The culmination of preparing operating budgets is the
A) budgeted balance sheet.
B) production budget.
C) cash budget.
D) budgeted income statement.

Question

Quizplus · Accepted Answer

The budgeted income statement is the most common and important output of the operating budget process. It summarizes the expected revenues and expenses for the budget period, and shows the expected net income or loss. The other options listed are also important components of the operating budget, but are not the culmination of the process. The budgeted balance sheet shows the expected financial position of the company at the end of the budget period, and the production budget and cash budget help to determine the expected sales and cash flows.

The Culmination of Preparing Operating Budgets Is the