Jaunty Company is preparing its budgeted balance sheet for the upcoming year.The proper time to prepare this budget is
A)at the start of the budgetary process so that comparisons with last year's balance sheet can be made.
B)once the capital budget has been done and approved.
C)prior to the completion of the cash budget for the year.
D)generally towards the end of the budgetary process when most other budgets have been approved.

Question

Quizplus · Accepted Answer

It is best to prepare the budgeted balance sheet towards the end of the budgetary process when most other budgets have been approved. This ensures that all relevant information from other budgets, such as the sales budget, production budget, and cash budget, is taken into account when preparing the balance sheet. It also allows for any changes or adjustments to be made based on the finalization of other budgets.

Jaunty Company Is Preparing Its Budgeted Balance Sheet for the Upcoming