Question

When preparing the budgeted balance sheet of a merchandising company, the amount of Merchandise Inventory can be obtained from the ________.

A) merchandise inventory account
B) inventory, purchases, and cost of goods sold budget
C) production budget
D) capital expenditure budget and cash budget

Answer 1

The amount of Merchandise Inventory can be obtained from the merchandise inventory account when preparing the budgeted balance sheet of a merchandising company.

Step-by-step explanation:

The amount of Merchandise Inventory can be obtained from the merchandise inventory account when preparing the budgeted balance sheet of a merchandising company.

The merchandise inventory account is a record of the company's inventory of goods available for sale. It includes the cost of goods purchased or manufactured and not yet sold.

By calculating the value of the merchandise inventory account, a company can determine the value of its inventory and include it in the budgeted balance sheet.