The amount of accumulated depreciation for the budgeted balance sheet of a merchandising company can be obtained from the ________.
A) cash budget
B) selling and administrative expense budget and the prior balance sheet
C) cash payments for selling and administrative expense budget
D) financial budget

Question

Quizplus · Accepted Answer

The selling and administrative expense budget will include depreciation as a line item, and the prior balance sheet will indicate the amount of accumulated depreciation already recorded. By subtracting the prior accumulated depreciation from the current depreciation expense, the budgeted amount of accumulated depreciation can be determined. The cash budget and cash payments for selling and administrative expense budget do not directly provide information on accumulated depreciation, and the financial budget is a more comprehensive budget including all financial activities of the company.

The Amount of Accumulated Depreciation for the Budgeted Balance Sheet