Long-term liability balances for the budgeted balance sheet are obtained from:
A)The cash budget and capital expenditures budget.
B)The cash budget and sales budget.
C)The cash budget and budgeted income statement.
D)The sales budget and production budget.
E)The asset budget and debt budget.

Question

Quizplus · Accepted Answer

Long-term liability balances for the budgeted balance sheet are derived from the cash budget, which shows the company's cash inflows and outflows, and the capital expenditures budget, which outlines planned investments in long-term assets. These budgets help determine the need for long-term financing.

Long-Term Liability Balances for the Budgeted Balance Sheet Are Obtained