Question

Following are selected accounts for a company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS). If an item will not appear on either budgeted financial statement, label it NA.

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Office salaries expense . . . . . . . . . . . . . . .

Accumulated depreciation . . . . . . . . . . . . .

Amortization expense . . . . . . . . . . . . . . .

Interest expense on loan payable . . . . . . .

Cash dividends paid . . . . . . . . . . . . . . . . . .

Bank loan owed . . . . . . . . . . . . . . . . . . . . .

Cost of goods sold . . . . . . . . . . . . . . . . . .

Short answer

Cash dividendsare thosepaymentsmade by an organization to itsshareholdersincash against the share purchased.

Step-by-step solution

Introduction

The budgeted income statement and the budgeted balance sheet are the types of statements an organization prepares on a hypothetical basis to ascertain its future net income.

Indication of the amounts

Particulars	Indication
Sales	Budgeted income statement
Office salaries expense	Budgeted income statement
Accumulated depreciation	Budgeted balance sheet
Amortization expense	Budgeted income statement
Interest expense on loan payable	Budgeted income statement
Cash dividends paid	N/A
Bank loan owed	Budgeted balance sheet
Cost of goods sold	Budgeted income statement