Question

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Payable can be taken from the ________.

A) inventory, purchases, and cost of goods sold budget
B) schedule of cash payments
C) direct materials budget
D) selling and administrative expenses budget

Answer 1

The balance of Accounts Payable is derived from the schedule of cash payments, as it details the payments due to suppliers for credit purchases.

Step-by-step explanation:

The balance of Accounts Payable for a company can be taken from the schedule of cash payments. This schedule outlines the expected outflows of cash, which includes the payments the company owes to its suppliers for purchases on credit. The Accounts Payable account will reflect the amounts that are due for payment in the near term and is directly related to the purchase of goods and services that have not yet been paid for.