Annual financial statement of the anticipated receipts and expenditures is called
- ABalance sheet
- BFinancial statement
- CBudgetCorrect
- DExpenditure-receipt statement
Solution
Concept
Definition of a budget
Step-by-step solution
1. A budget is an annual statement of the expected receipts and expenditure.
Explanation
The budget is the estimate of the income and expenditure for a financial year. A balance sheet shows the assets and liabilities on a given date.
Shortcut
Budget = anticipated; balance sheet = actual.
Common mistake
Choosing financial statement.
Correct answer: C) Budget