A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:
A) Production budget.
B) Cash budget.
C) Rolling budget.
D) Sales budget.
E) Capital expenditures budget.

Question

Quizplus · Accepted Answer

A capital expenditures budget is a plan that outlines the expected dollar amounts to be received from disposing of plant assets and the expected dollar amounts to be spent on purchasing additional plant assets. It is an important tool for managing a company's long-term investments in fixed assets. The other budgets listed (production, cash, rolling, and sales) do not specifically address the management of plant assets.

A Plan That Lists Dollar Amounts to Be Received from Disposing