What is the purpose of balance sheet budgets?
A) Providing details for revenue and expense plans
B) Forecasting cash receipts and disbursements
C) Outlining specific expenditures for plant, equipment, inventories, and other capital items
D) Expressing physical requirements of production or material for the budget period
E) Forecasting the status of assets, liabilities, and net worth at the end of the budget period

Question

Quizplus · Accepted Answer

The purpose of balance sheet budgets is to forecast the status of assets, liabilities, and net worth at the end of the budget period. It is not focused on detailing revenue and expense plans (A), forecasting cash receipts and disbursements (B), outlining specific expenditures for plant, equipment, inventories, and other capital items (C), or expressing physical requirements of production or material for the budget period (D).

What Is the Purpose of Balance Sheet Budgets