When a company is preparing a budgeted statement of cash flows,the payments for selling and administrative expenses can be obtained from the ________.
A) budgeted payments for direct materials purchases
B) sales budget
C) cash budget
D) budgeted balance sheet

Question

Quizplus · Accepted Answer

The cash budget outlines the expected cash inflows and outflows for a given period based on forecasted sales, expenses, and other activities. Payments for selling and administrative expenses are anticipated cash outflows that can be obtained from the cash budget. Option A is incorrect as the budgeted payments for direct materials purchases do not include selling and administrative expenses. Option B is incorrect as it does not provide information on cash outflows for expenses. Option D is incorrect as it relates to the financial position of the company at a specific point in time, rather than providing information on expected cash flows.

When a Company Is Preparing a Budgeted Statement of Cash