Answer: First option is correct.
Step-by-step explanation:
Income and expenses are found on a budget income statement.
As Income refers to the all types of receipts which are received by the company.
And expenditure refers to all types of expenses which are incurred by the company.
Difference of income and expenditure is known as profit in general.
If Income is greater than expenditure, then there is surplus.
If Income is less than expenditure, then there is deficit.
Hence, Income and expenses are found on a budget income statement.
Thus, First option is correct.
