Multiple Choice Questions:

1) A company has prepar1d the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Inventory can be taken from:

A) Production budget and cost of goods sold budget.

B) The financial budget.

C) The cash budget.

D) The selling and administrative expenses budget.

2) 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:

A) The inventory, purchases and cost of goods sold budget.

B) The budgeted cash payments for purchases.

C) The cash budget.

D) The selling and administrative expenses budget.

3) A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of retained earnings can be taken from:

A) The inventory, purchases and cost of goods sold budget.

B) The operating budget.

C) The cash budget.

D) The budgeted income statement plus the balance sheet from the prior year.