A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. While doing so, the cash balance can be taken from:

Question

Quizplus · Accepted Answer

The cash balance for the budgeted balance sheet should be taken from the cash budget, which provides a detailed forecast of the inflows and outflows of cash during the budget period. The operating budget and sales budget may provide some information on expected cash inflows and outflows, but they do not provide the level of detail necessary for the budgeted balance sheet. The budgeted income statement only provides information on revenues, expenses, and profits for the period, but does not include cash balances.

A Company Has Prepared the Operating Budget and the Cash