A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Accounts Payable can be taken from the ________.

Question

Quizplus · Accepted Answer

The schedule of cash payments will show the expected cash outflows for paying off accounts payable within the budget period, and therefore will give the balance of accounts payable needed for the budgeted balance sheet. The inventory, purchases, and cost of goods sold budget relates to the cost of inventory purchases rather than the balance of accounts payable. The direct materials budget relates to the cost of materials purchases rather than the balance of accounts payable. The selling and administrative expenses budget is not related to the balance of accounts payable.

A Company Has Prepared the Operating Budget and the Cash