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The _____ is a financial budget and shows how a firm's operations, investing, and financing activities are expected to affect all of the asset, liability, and owners' equity accounts.

a. budgeted income statement
b. budgeted balance sheet
c. static cash budget
d. capital expenditure budget

User Ptfaulkner
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Final answer:

The budgeted balance sheet is a financial budget that shows how a firm's operations, investing, and financing activities are expected to affect all of the asset, liability, and owners' equity accounts.

Step-by-step explanation:

The correct answer is b. budgeted balance sheet.

A budgeted balance sheet is a financial budget that shows how a firm's operations, investing, and financing activities are expected to affect all of the asset, liability, and owners' equity accounts. It provides a snapshot of a company's financial position at a specific point in time, taking into account projected revenues, expenses, and investments.

For example, a budgeted balance sheet might show how a company's decision to invest in new equipment (investing activity) is expected to increase its assets, while also showing how borrowing money to finance the purchase (financing activity) will increase its liabilities. The budgeted balance sheet helps the company anticipate the impact of its financial decisions on its overall financial position.

User Prince Singh
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