The document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for is referred to as a:
A) sources and uses of funds statement
B) assumptions sheet
C) pro forma financial statement
D) credit and debit statement
E) capital and operational budgeting statement

Question

Quizplus · Accepted Answer

A sources and uses of funds statement outlines where a firm will obtain the necessary funds and how they will be allocated. This document is used to help prepare a budget and establish funding goals. Pro forma financial statements may also be used in the budgeting process, but they do not specifically outline where the money will come from. An assumptions sheet may be utilized, but it is not a specific budgeting document. Credit and debit statements and capital and operational budgeting statements are not commonly used in the budgeting process.

The Document That Lays Out Specifically How Much Money a Firm