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

Question

Quizplus · Accepted Answer

The budgeted cash payments for purchases would be the best choice for providing the balance for accounts payable, as it would show the amount of cash that is expected to be paid out to vendors during the budget period. This information is necessary for calculating the accounts payable balance, which represents the amount of money owed to vendors for goods and services received but not yet paid for. The other choices (cash budget, electricity and gas budget, and inventory, purchases, and cost of sales budget) do not provide this specific information.

A Company Has Prepared the Operational Budget and the Cash