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

Question

Quizplus · Accepted Answer

The Inventory, purchases and cost of goods sold budget would provide the necessary information to determine the balance for Inventory on the budgeted balance sheet, as it includes details on the inventory levels and the cost of goods sold. The other options, such as budgeted cash collections, cash budget, and operating expenses budget, do not provide the necessary information for calculating the balance of Inventory on the balance sheet.

A Company Has Prepared the Operational Budget and the Cash