Scenario - Katrina Aldridge
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year.
-Which of these budgets will provide Katrina information about planned investments in major assets like buildings and heavy machinery?
A) Cash budget
B) Revenue budget
C) Capital budget
D) Expense Budget
E) Balance-Sheet budget

Question

Scenario - Katrina Aldridge 
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year.
-Which of these budgets will provide Katrina information about planned investments in major assets like buildings and heavy machinery?
A) Cash budget
B) Revenue budget
C) Capital budget
D) Expense Budget
E) Balance-Sheet budget

Quizplus · Accepted Answer

The budget that provides information about planned investments in major assets like buildings and heavy machinery is the capital budget. The capital budget is specifically designed to show the expected capital expenditures for long-term assets which include major assets like buildings and heavy machinery. The other budgets (cash budget, revenue budget, expense budget, and balance-sheet budget) do not provide specific information about capital expenditures.