Which of the following is a tool that managers use to estimate major expenditures for assets, expansion of facilities, and mergers and acquisitions?
A) cash budget
B) capital budget
C) equity budget
D) revenue forecast

Question

Quizplus · Accepted Answer

A capital budget is a financial plan that projects the funds required for major expenditures such as acquiring assets, expanding facilities, and mergers and acquisitions. It is an important tool for managers to estimate and plan for these significant investments in the long term. Option A, cash budget, is a financial plan that outlines cash inflows and outflows over a given period. Option C, equity budget, is not a standard financial term. Option D, revenue forecast, is a financial plan that estimates future revenues based on historical data and various assumptions. While it is useful for budgeting purposes, it does not specifically address major expenditures for assets, expansion of facilities, and mergers and acquisitions.

Which of the Following Is a Tool That Managers Use