A company has prepared the operational budget and the cash budget and is now preparing the budgeted balance sheet. To provide the balance for Accounts payable, which document should be used?

Question

Quizplus · Accepted Answer

Accounts payable represent amounts owed to suppliers for purchases made on credit. Therefore, the best document to provide the balance for accounts payable is the budgeted cash payments for purchases, as it shows how much the company plans to pay its suppliers during the budget period.

A Company Has Prepared the Operational Budget and the Cash