A(n) _____ budget plans expenditures for obtaining, expanding, and replacing physical facilities.
A) capital
B) operating
C) sales
D) cash flow

Question

Quizplus · Accepted Answer

A capital budget pertains to investments in physical assets such as buildings, machinery, and equipment. This type of budget plans for the acquisition, expansion, and replacement of these types of assets. Operating budgets, on the other hand, focus on day-to-day activities and expenses. Sales budgets project expected revenues, while cash flow budgets forecast the inflow and outflow of cash in the business.

A(n) _____ Budget Plans Expenditures for Obtaining, Expanding, and Replacing