Pick which answer fits this accounting case. In most cases, not-for-profit entities:

*can ignore budgets because they are not expected to generate net income.

*prepare budgets using the same steps as those used by profit-oriented enterprises.

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

*begin the budgeting process by budgeting expenditures rather than receipts.