Which of the Following Statements About a Budgeted Income Statement

question 66

Multiple Choice

Which of the following statements about a budgeted income statement is not true?

• A) The budgeted income statement is prepared after the financial budgets are prepared.
• B) The budgeted income statement is prepared on the accrual basis of accounting.
• C) The budgeted income statement can be prepared in a multiple-step format.
• D) The budgeted income statement is prepared using the individual operating budgets.

---

Definitions:

Rate of Interest

The percentage of principal charged by the lender for the use of its money.

Principal Amount

The initial size of a loan or an investment, excluding any interest or profit that has been added over time.

Fair Value

The price that would be received for selling an asset or paying off a liability, often the market price for an equity or debt security.

Interest-bearing Note

A debt instrument that requires the issuer to pay the lender interest over the life of the note, in addition to repaying the principal amount at maturity.