When preparing the budgeted balance sheet of a merchandising company,the amount of Merchandise Inventory can be obtained from the ________.
A) merchandise inventory account
B) inventory, purchases, and cost of goods sold budget
C) production budget
D) capital expenditure budget and cash budget

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of goods sold budget would provide the necessary information to determine the amount of Merchandise Inventory for the budgeted balance sheet. This budget would detail the expected purchases of inventory, the expected cost of those purchases, and the expected cost of goods sold, which would allow for the calculation of the ending inventory balance.

When Preparing the Budgeted Balance Sheet of a Merchandising Company,the