During the financial forecasting process when income and expenses are forecasted profits change. The effect of forecasting on the firm's balance sheet is best described as:

A$.$

When forecasted income increases more than expenses then cash at bank will certainly increase in the balance sheet.

B$.$

When forecasted income increases more than expenses then retained earnings will be increased in the balance sheet.

C$.$

When forecasted income increases more than expenses then accrued revenue results but there is no change in the balance sheet.

D$.$

When forecasted income increases more than expenses it is likely expenses have reduced and caused assets to increase in the balance sheet.