Question

When a company is preparing a budgeted statement of cash flows, the payments for selling and administrative expenses can be obtained from the ________.

A) budgeted payments for direct materials purchases
B) sales budget
C) cash budget
D) budgeted balance sheet

Answer 1

The payments for selling and administrative expenses in a budgeted statement of cash flows can be found in the cash budget, which is a detailed plan of expected cash flows including such expenses.

Step-by-step explanation:

When a company is preparing a budgeted statement of cash flows, the payments for selling and administrative expenses can generally be found in the cash budget. The cash budget is a detailed plan that shows all expected sources and uses of cash within a specific period. It includes detailed breakdowns of how the cash will be used, encompassing expenses such as selling and administrative expenses. It helps the company plan and manage its cash flow. Other budgets, like the sales budget or budgeted balance sheet, provide different information that is used to prepare the cash budget but do not directly provide information on specific payments for expenses.