The budgeted balance sheet is prepared with data contained in the previously prepared components of the master budget.

Question

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The budgeted balance sheet is based on the information contained in the other components of the master budget such as sales forecast, cash budget, and operating budgets. It is a projection of the company's financial position at a specified future date, based on the expected inflows and outflows of cash during the budget period.

The Budgeted Balance Sheet Is Prepared with Data Contained in the Previously