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

Question

Quizplus · Accepted Answer

The Inventory, purchases and cost of sales budget would provide the balance for Inventory, as it outlines the expected inventory levels and the cost of purchasing inventory to meet sales demands. The other options (Electricity and gas budget, Cash budget, and Budgeted cash collections) do not directly relate to the inventory balance on the balance sheet.

A Company Has Prepared the Operational Budget and the Cash