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

Question

Quizplus · Accepted Answer

The budgeted income statement will provide the information necessary to determine the ending balance for Retained earnings, as it shows the company's projected revenue and expenses for the period, which will ultimately determine the net income or loss that affects Retained earnings on the balance sheet. The other options are not directly relevant to determining the Retained earnings balance.

A Company Has Prepared the Operational Budget and the Cash