Budget Control Schedule

B

The budget control schedule is a tool used to monitor and control actual income and expenses against the budgeted amounts for various categories. It is a summary that compares actual income and expenses with budgeted amounts for each category, such as rent, utilities, and supplies.

Option A is partially correct, as the budget control schedule does show how actual income and expenses compare with budget categories. However, it does not provide information on variances (surplus or deficit) that exist between actual and budgeted amounts.

Option B is the correct answer because it includes all the elements of a budget control schedule. It not only compares actual income and expenses with budget categories but also provides information on variances that exist. This information helps to identify where there may be a surplus or deficit and allows for adjustments to be made to the budget to bring it back in line with the financial goals of the organization.

Option C is incorrect because a graphical presentation of cash flows is a separate tool used for analyzing cash flow movements in a business. It is not a summary of income and expenses compared to budget categories.

Option D is also incorrect because the interest earned each year is not related to the budget control schedule. It is a separate element of financial analysis that deals with the amount of interest earned on investments or deposits.