Question

An income statement reports what actually occurred and an operating budget is a plan for what is to come.

a. Income statements are future-oriented
b. Operating budgets report past occurrences
c. Income statements and operating budgets serve the same purpose
d. Income statements and operating budgets have different functions

Answer 1

d. Income statements and operating budgets have different functions.

Income statements and operating budgets serve different purposes. An income statement reports past occurrences, while an operating budget is a plan for the future.

Step-by-step explanation:

Income statements and operating budgets serve different purposes. Income statements and operating budgets serve different purposes. An income statement reports past occurrences, while an operating budget is a plan for the future.

An income statement reports what actually occurred in a specific accounting period. It provides information on a company's revenues, expenses, and net income. It helps analyze the financial performance of a company and assess its profitability.

On the other hand, an operating budget is a plan for what is to come. It outlines the projected revenues and expenses for a future period. It helps a company set goals, allocate resources, and make informed decisions about its operations.