CPA Study Group
Per Wiley April 2017 CPAexcel Exam review study guide the master budget is composed of several coordinated parts which are the operating budget, financial budget and the capital expenditures budget. The Operating budget which consists of: Sales budget, production budget, production cost budgets, and selling and administrative expense budget. The financial budget consists of: cash budget, budgeted (or pro-forma) income statement, and budgeted (or pro-forma) balance sheet, and the last part of the master budget is the capital expenditures budget. So how is the budgeted income statement not the correct answer to this question?