The _____ is the last financial budget; it shows how the firm's operations, investing, and financing activities are expected to affect all of the asset, liability, and owners' equity accounts.
A) cash budgets
B) capital expenditure budget
C) budgeted income statement
D) budgeted balance sheet

Question

Quizplus · Accepted Answer

The budgeted balance sheet is the last financial budget that shows how the firm's operations, investing, and financing activities are expected to affect all of the asset, liability, and owners' equity accounts. The cash budgets only show the inflow and outflow of cash, the capital expenditure budget only shows the expected expenditures on fixed assets, and the budgeted income statement shows the expected revenues and expenses of the firm. None of these budgets provide a comprehensive look at the expected changes in all accounts.

The _____ Is the Last Financial Budget; It Shows How