Question

A managerial accounting report that presents predicted amounts of the company's revenues and expenses for the budget period is called a:

a) Budgeted income statement.
b) Budgeted balance sheet.
c) Master plan.
d) Rolling income statement.
e) Continuous profit statement.

Answer 1

Answer: a) Budgeted income statement.

Explanation: The income statement refers to an organizations spending and revenue for a specific period of time. It contains Financial figures on the spendings made or cost incurred and the revenue made for the period which could be on a monthly, quarterly or yearly basis as the case may be. However, as the name implies, the budgeted income statement refers to a a sttemnt of expenses and revenue expected or envisaged at a certain period in the future. The amount stated in the budgeted income statement are made from projections and not the actual figures incurred or earned.

Answer 2

Answer:

The correct option is budgeted income statement,option A.

Explanation:

Budgeted balance sheet shows predicted amounts of assets,liabilities and shareholders' equity ,hence it i a wrong choice.

Rolling income statement is a forecast income statement that is updated at intervals say every three months in the light of the recent economic trends in order that the forecast can mirror to some extent what is presently obtainable in the economy.

Budgeted income statement,the correct option is a forecast of revenues and expenses for a budgeted cycle.