When a company is preparing a budgeted statement of cash flows, the payments to suppliers for purchases of inventory can be obtained from:

Question

Quizplus · Accepted Answer

The cash payments to suppliers for purchases of inventory are classified as cash outflows under the operating activities section of the statement of cash flows. These cash outflows can be obtained from the cash budget, which details the anticipated cash transactions for the period. The cash budget is a key component in the preparation of the statement of cash flows as it provides information on the expected cash inflows and outflows for the period. Therefore, the best choice is A.

When a Company Is Preparing a Budgeted Statement of Cash