A. The pro forma income statement is a part of the financial budget, not the operating budget.
B. The pro forma balance sheet is a part of the financial budget, not the operating budget.
C. The sales budget is a part of operating budget and is usually the first budget to be prepared in the budgeting process. It is therefore the foundation of the operating budget.
D. The financial budget is neither an operating budget nor a part of the operating budget.
