While preparing the budgeted income statement of a merchandising company,the amount of cost of goods sold can be taken from the ________.
A) budgeted balance sheet
B) budgeted cash flow statement
C) inventory, purchases, and cost of goods sold budget
D) capital expenditures budget

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of goods sold budget will provide the estimated cost of goods sold for the budgeted income statement. The budgeted balance sheet will provide information about assets, liabilities and equity for a particular period of time, whereas the budgeted cash flow statement will provide information about the cash inflows and outflows during the budget period. The capital expenditures budget will provide estimates of the expenditures that will be incurred to acquire property, plant and equipment.

While Preparing the Budgeted Income Statement of a Merchandising Company,the