Question

Which of the following description is true? Group of answer choices Budgeted income statement is part of the financial budget. Financial budgets must be completed before the preparation of operational budgets. Sometimes there will still be a cash deficiency at the end of the month even if the monthly cash budget is prepared properly. Not-for-profit entities budget on the basis of revenue and expense.

Answer 1

Not-for-profit entities budget on the basis of revenue and expense.

Step-by-step explanation:

In simple words, not for profit organisation prepare their budget on the basis the revenue they are hoping to have and the expenses they are going to occur. This is different from profit making organisation as they have to take into considerations a certain level of profit that they want to achieve for the time period in subject.

A not for profit organisations operates for welfare and try to make income that is sufficient for running those operations successfully. Thus, the last statement is correct.