Mickle Company has the following information:
Purchases are paid for in the following manner:
20 percent in the month of purchase
50 percent in the month after purchase
30 percent two months after purchase
-The collection of cash from customers would appear on which of the following?

Question

Mickle Company has the following information:
  Purchases are paid for in the following manner:
20 percent in the month of purchase
50 percent in the month after purchase
30 percent two months after purchase
-The collection of cash from customers would appear on which of the following?

Quizplus · Accepted Answer

The collection of cash from customers would appear on the cash budget as it relates to the inflow of cash. The sales budget pertains to the projection of sales, while the operating expense budget deals with the projection of expenses. Therefore, the correct choice is C - Cash budget.

Mickle Company Has the Following Information