Which of the following shows the schedule of cash payments for the materials and services the firm purchased on account, and all cash payments for services that are paid in advance or paid at the time of purchase?
A) Selling and administrative expense budget
B) Cash payments budget
C) Cash receipts budget
D) Overhead budget

Question

Quizplus · Accepted Answer

The cash payments budget shows the expected timing and amounts of all cash payments, including payments for materials and services purchased on account and payments for services paid in advance or at the time of purchase. The selling and administrative expense budget shows the expected amounts of expenses, but not necessarily the timing of cash payments. The cash receipts budget shows the expected timing and amounts of all cash received, but not the cash payments for purchases or services. The overhead budget shows the expected overhead costs, but not necessarily the timing of cash payments.

Which of the Following Shows the Schedule of Cash Payments