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 receivable, which document should be used?

Question

Quizplus · Accepted Answer

To provide the balance for Accounts receivable, the best option is to use the sales budget plus the budgeted cash collections. This is because accounts receivable represents the amount of money owed to the company by its customers, so it is directly related to the sales made and the expected cash collections from those sales. The other options listed do not provide information directly related to accounts receivable.

A Company Has Prepared the Operational Budget and the Cash