The correct statement is B). Budgeted income statement A) Yes, the capital expenditures (CE) budget is included in the financial budget (FB) because CE is part of the financials of the entity. Therefore, it is not the correct option. B) No, the budgeted statement of income is not included in the FB because it does not shows the financial position of an entity. It shows only the income and expense part of the entity. Therefore this option is correct. C) Yes, a budgeted balance sheet is the core and important part of FB because it shows the expected financial position of the company and also includes all the financial information of an entity. D) Yes, budgeted statements of cash flows are also included in the FB. Flows of cash are also the core part of an entitys financials. Therefore, this option is also not correct