Which of the following highlights a firm's spending plans for the purchase of major assets?
A)Operating budget
B)Capital budget
C)Cash budget
D)Surplus budget

Question

Quizplus · Accepted Answer

Capital budget outlines a firm's spending plans for the purchase of major assets such as property, equipment, and machinery. It details the expected costs of these assets, the funding sources, and the timing of the purchases. Operating budget describes the firm's planned revenues and expenses for the day-to-day operations, while cash budget focuses on the inflows and outflows of the company's cash position. Surplus budget is not a commonly used term in financial planning.

Which of the Following Highlights a Firm's Spending Plans for the Purchase