The budgeted statement of financial position does NOT use information from which of the following:
A) Budgeted statement of cash flows.
B) Cash budget.
C) Capital budget.
D) Budgeted income statement.

Question

Quizplus · Accepted Answer

The budgeted statement of financial position uses information from the cash budget, capital budget, and budgeted income statement to forecast the company's financial position at a future date. It does not directly use information from the budgeted statement of cash flows, as this statement is more about the inflows and outflows of cash, whereas the statement of financial position is concerned with the company's assets, liabilities, and equity at a specific point in time.

The Budgeted Statement of Financial Position Does NOT Use Information