Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n)
A) cash budget.
B) capital budget.
C) revenue budget.
D) operating budget.
E) expense budget.

Question

Quizplus · Accepted Answer

Madison is working on a capital budget, which plans for long-term investments in major assets such as buildings and heavy machinery. A cash budget plans for the inflow and outflow of cash, a revenue budget plans for expected income, an operating budget plans for day-to-day expenses, and an expense budget plans for specific expenses. None of these accurately describe the task Madison has been assigned.

Madison Has Been Assigned to Work on the Development of a Budget