Which of the following is NOT one of the four primary financial statements?

• A. Statement of Cash Flows
• B. Balance Sheet
• C. Statement of Retained Earnings
• D. Statement of Budgeted Expenses

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the four primary financial statements. These are the Statement of Cash Flows, Balance Sheet, Income Statement, and Statement of Retained Earnings. Each serves a specific purpose in financial reporting.
2. Step 2: Review the purpose of each primary financial statement: The Statement of Cash Flows shows cash inflows and outflows, the Balance Sheet provides a snapshot of assets, liabilities, and equity, the Income Statement reports revenues and expenses, and the Statement of Retained Earnings tracks changes in retained earnings over a period.
3. Step 3: Compare the given options to the list of primary financial statements. Identify which option does not belong to the list of primary financial statements.
4. Step 4: Recognize that the 'Statement of Budgeted Expenses' is not one of the four primary financial statements. It is typically used for internal planning and budgeting rather than external financial reporting.
5. Step 5: Conclude that the correct answer is 'Statement of Budgeted Expenses,' as it is not part of the four primary financial statements used in financial accounting.