Question

Long-term liability balances for the budgeted balance sheet are obtained from: Multiple Choice The cash budget and capital expenditures budget. The cash budget and sales budget. The cash budget and budgeted income statement. The sales budget and production budget. The asset budget and debt budget.

Answer 1

Answer:

The cash budget and capital expenditures budget.

Explanation:

We can calculate the long term liability balance from the cash budget and budgeted capital expenditure. We will determined the total cash availability and capital expenditure in the future to calculate if there is any requirement of  long term liability. Capital expenditure are normally significant expenditure which can be financed through long term liabilities.