In most cases, not-for-profit entities:

(a) prepare budgets using the same steps as those used by profit-oriented businesses.

(b) know budgeted cash receipts at the beginning of a time period, so they budget only for expenditures.

(c) begin the budgeting process by budgeting expenditures rather than receipts.

(d) can ignore budgets because they are not expected to generate net income.