Question

Which one of the following would not be included in a full set of company financial statements?

• A. The cash budget.
• B. The statement of financial position.
• C. The statement of changes in equity.
• D. The income statement.

Answer 1

The correct option is A The cash budget.

A financial statement is a collection of data organised according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. The financial statements are comprised of four basic reports, which are Income statement, Balance sheet, Statement of cash flows, Statement of retained earnings.

Hence cash budget would not be included in financial statements.