Question

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Receivable can be obtained from the ________.

Answer 1

Answer:

b) Schedule of cash receipts from customers

Explanation:

Selling and administrative expenses budget cannot provide the balance of an asset account. Therefore, option A is wrong.

Inventory, purchases, and cost of goods sold budget provide the information of inventory used and purchase of raw materials. Therefore, option C is wrong.

Capital expenditures budget provides non-correct related information. Therefore, option D is wrong.

As the company collects money from customers (Accounts Receivable), therefore, we can find it from the schedule of cash receipts from customers. Therefore, option B is the answer.