Final answer:
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.