When a Company Is Preparing a Budgeted Statement of Cash

question 49

Multiple Choice

When a company is preparing a budgeted statement of cash flows, the payments to suppliers for purchases of inventory can be obtained from:

• A)the cash budget.
• B)the sales budget.
• C)budgeted cash collections.
• D)the budgeted balance sheet.

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Definitions:

Tax

An essential monetary obligation or different kind of dues enforced on a taxpayer by a governmental institution for the purpose of funding state expenses and a variety of public outgoings.

Good

In economics, a good is a material that satisfies human wants and provides utility, for example, to a consumer making a purchase of a satisfying product.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded, leading to market balance.

Equilibrium Quantity

The quantity of goods or services bought and sold at the equilibrium price in a market.