Question: 1. In preparing a budgeted balance sheet,
(a) plant assets are determined by analyzing the capital expenditures budget and the balance sheet from the beginning of the budget period,
(b) liabilities are determined by analyzing the general and administrative expense budget, or
(c) retained earnings are determined from information contained in the cash budget and the balance sheet from the beginning of the budget period.
2. How does a just-in-time inventory system differ from a safety stock system?