Question

On the budgeted balance sheet,the number for notes payable will come from the ________.

A) operating budget
B) schedule of cash receipts
C) cash budget
D) cost of goods sold budget

Answer 1

B) schedule of cash receipts

Step-by-step explanation:

Personally, I do not consider this option to be 100% correct since it is incomplete. The correct answer is: debt service budget.

When you are preparing a budgeted balance sheet, you might get some information about receiving cash by issuing notes payables, but notes payables can include other transactions besides cash loans. E.g. You might finance the purchase of equipment by issuing a promissory note. You could also refinance outstanding credits from suppliers with notes payables. And many others, and none is related to cash receipts.