Capstone Financial Services is considering the purchase and installation of an expensive computer network.This is the type of expenditure that would be included in a(n):
A)capital budget.
B)asset budget.
C)cash budget.
D)operating budget.

Question

Quizplus · Accepted Answer

The purchase and installation of an expensive computer network is a long-term investment, and therefore, it would be included in a capital budget. A capital budget is created for the purchase of long-term assets that have a useful life beyond the current budget period.

Capstone Financial Services Is Considering the Purchase and Installation of an Expensive