In preparing a budgeted balance sheet,the amount for Accounts Receivable is primarily determined from:
A) The purchase budget.
B) The sales budget.
C) The capital expenditures budget.
D) The budgeted income statement.
E) The selling expenses budget.

Question

Quizplus · Accepted Answer

The amount for Accounts Receivable is primarily determined from the sales budget, as it provides information on the expected level of credit sales during the budget period. The accounts receivable balance is the total amount of credit sales that are expected to be collected from customers during the budget period.

In Preparing a Budgeted Balance Sheet,the Amount for Accounts Receivable