All of the following are general-purpose financial statements except Cash budget.

• A. Cash budget
• B. Income statement
• C. Balance sheet
• D. Statement of cash flows

Answer: (A)

General-purpose financial statements are reports prepared for external users to assess a company’s performance and financial position. The main ones are the income statement, which shows revenues and expenses over a period; the balance sheet, which captures assets, liabilities, and equity at a point in time; and the statement of cash flows, which details cash inflows and outflows during the period. The cash budget, however, is an internal planning tool used to forecast future cash receipts and disbursements, ensuring liquidity and helping with financing decisions. It isn’t part of external financial reporting and isn’t a GAAP financial statement, which is why it’s the exception.