What is an itemized summary of the expected income and expenses for a specified period?

The correct answer is a budget because a budget is specifically designed to provide a detailed plan that outlines anticipated income and expenses over a given time frame, such as monthly or annually. This planning tool allows individuals to manage their finances effectively by predicting how much money will come in and how much will go out. It helps in setting financial goals, making informed spending decisions, and ensuring that resources are allocated appropriately.

While a financial statement provides an overview of financial performance, including income and expenses, it typically reflects historical data rather than forward-looking projections. A cash flow report tracks actual cash inflows and outflows over a period but doesn’t necessarily itemize future expectations. An expense report records specific expenses incurred and is often used for reimbursement purposes, but it does not anticipate future income or expenses. Thus, the definition aligns most accurately with what a budget represents.