A company has prepared the operational budget and the cash budget and is now preparing the budgeted balance sheet.To provide the balance for the Cash account,which document should be used?

Question

Quizplus · Accepted Answer

The Cash budget provides information on expected cash inflows and outflows during the budget period and is used to forecast the ending balance of the Cash account, which is necessary for preparing the budgeted balance sheet. The Sales budget, Inventory, Purchases and Cost of Sales budget, and Budgeted income statement provide information necessary for preparing the budgeted income statement and balance sheet, but they do not directly provide information on the ending balance of the Cash account.

A Company Has Prepared the Operational Budget and the Cash