Asked by Quitta Moore on Jun 24, 2024
Verified
Which of the following shows the schedule of cash payments for the materials and services the firm purchased on account, and all cash payments for services that are paid in advance or paid at the time of purchase?
A) Selling and administrative expense budget
B) Cash payments budget
C) Cash receipts budget
D) Overhead budget
Cash Payments Budget
A budget that estimates the cash payments an organization expects to make over a period, including expenses, purchases, and other outflows.
Selling and Administrative Expense Budget
A financial plan that estimates future selling expenses and administrative costs.
- Acquire knowledge on the role and assembly of forecasted financial statements.
Verified Answer
MA
MOHAMMAD Abu hadhoudJun 30, 2024
Final Answer :
B
Explanation :
The cash payments budget shows the expected timing and amounts of all cash payments, including payments for materials and services purchased on account and payments for services paid in advance or at the time of purchase. The selling and administrative expense budget shows the expected amounts of expenses, but not necessarily the timing of cash payments. The cash receipts budget shows the expected timing and amounts of all cash received, but not the cash payments for purchases or services. The overhead budget shows the expected overhead costs, but not necessarily the timing of cash payments.
Learning Objectives
- Acquire knowledge on the role and assembly of forecasted financial statements.
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