Purchases of buildings and equipment are formally planned in the:
A) selling and administrative expense budget.
B) capital expenditure budget.
C) depreciation budget.
D) budgeted balance sheet.

Question

Quizplus · Accepted Answer

Purchases of buildings and equipment are capital expenditures, which are formally planned in the capital expenditure budget. The selling and administrative expense budget would cover operating expenses, not capital expenditures, and the depreciation budget would only involve forecasting depreciation expenses for assets already owned. The budgeted balance sheet may include information on planned capital expenditures, but it is not the primary budget where these purchases would be planned.

Purchases of Buildings and Equipment Are Formally Planned in The