When a company is preparing a budgeted statement of cash flows,the payments for selling and administrative expenses can be obtained from the ________.

Question

Quizplus · Accepted Answer

Cash budget provides the expected cash inflows and outflows for the given period, including payments for selling and administrative expenses. Budgeted payments for purchases are not relevant as they are related to the purchase of inventory, and sales budget only provides the revenue side of the cash flow statement. Budgeted balance sheet shows the expected financial position at the end of the period, but does not directly provide the cash flow information.

When a Company Is Preparing a Budgeted Statement of Cash