In a master budget,the schedule of cash disbursements for purchases of inventory is used to prepare the ________.
A) operating expense budget
B) purchases budget
C) capital budget
D) cash budget

Question

Quizplus · Accepted Answer

The schedule of cash disbursements for purchases of inventory is used to prepare the cash budget, as it details the expected outflow of cash for inventory purchases. The operating expense budget covers all other expenses related to operating the business, the purchases budget only includes planned purchases, and the capital budget relates to long-term investments in assets.

In a Master Budget,the Schedule of Cash Disbursements for Purchases