Question

Telecom Company is preparing its annual budgeted income statement. What is the best place to locate the amount of interest expense for the year

Answer 1

Answer: d. Cash Budget

Explanation:

The Cash budget is used to project the company's expected position in terms of the cash it holds in the future. As such, the budget contains both cash receipts and cash disbursements.

Some of the disbursements include expenses and loan payments. The loan payments are where the interest expense will be found for the coming year.