A tool that managers use to estimate major expenditures for assets, expansion of facilities, and mergers and acquisitions is called a(n) _____.
A) capital budget
B) cash budget
C) revenue forecast
D) negative-flow budget
E) equity budget

Question

Quizplus · Accepted Answer

A capital budget is a tool used by managers to estimate the major expenditures for assets, expansion of facilities, and mergers and acquisitions. It outlines the amount of money required for long-term investments and is essential in planning and decision-making processes related to capital investments. The other options, such as cash budget, revenue forecast, negative-flow budget, and equity budget, are not related to estimating major expenditures for long-term investments.

A Tool That Managers Use to Estimate Major Expenditures for Assets