A company has prepared the operating budget,the cash budget,and the budgeted income statement and is now preparing the budgeted balance sheet.The balance of retained earnings can be taken from ________.

Question

Quizplus · Accepted Answer

The balance of retained earnings can be taken from the budgeted income statement and the balance sheet of the previous year, as it represents the cumulative amount of earnings retained by the company since its inception, which is carried forward from the previous year's balance sheet. The inventory, purchases, and cost of goods sold budget, operating budget, and cash budget do not provide information on retained earnings.

A Company Has Prepared the Operating Budget,the Cash Budget,and the Budgeted