Which of the following accounts would appear on the inventory purchases budget and pro forma balance sheet?
A) Cost of goods sold
B) Sales revenue
C) Accounts receivable
D) Accounts payable

Question

Quizplus · Accepted Answer

Accounts payable typically appears on the inventory purchases budget as the purchases are made on credit and on the pro forma balance sheet as a liability. Cost of goods sold and sales revenue appear on the income statement, while accounts receivable appears on the accounts receivable aging schedule and the pro forma balance sheet as an asset.

Which of the Following Accounts Would Appear on the Inventory