When preparing a budgeted balance sheet,the balance in the equipment account is derived from information in the ________.
A) operating expense budget
B) capital budget
C) purchases and cost of goods sold budget
D) schedule of cash disbursements for operating expenses

Question

Quizplus · Accepted Answer

The equipment account balance is derived from the capital budget, which includes the planned purchases of long-term assets such as equipment. The operating expense budget, purchases and cost of goods sold budget, and schedule of cash disbursements for operating expenses are all used to prepare the budgeted income statement and cash flow statement.

When Preparing a Budgeted Balance Sheet,the Balance in the Equipment