When a Company Is Preparing a Budgeted Cash Flow Statement

question 142

Multiple Choice

When a company is preparing a budgeted cash flow statement and it wishes to calculate the payments to suppliers for purchases of inventory,it should refer to which of the following?

• A) Budgeted cash payments for purchases
• B) Budgeted balance sheet
• C) Budgeted cash collections
• D) Sales budget

---

Definitions:

Philip Crosby

Philip Crosby was a businessman and author who contributed significantly to management theory, particularly in the areas of quality and performance improvement.

Contingency Plan

A strategy or plan developed to address possible future events or circumstances that might adversely affect an organization.

Early Warning Signals

Indicators or signs that precede and predict upcoming problems or changes, allowing for preemptive action.

Shadow Plan

A backup plan or strategy that is developed to be used as an alternative in case the original plan fails or cannot be implemented.