CASE
Scenario - Martina Gomez
The yearly auditing review of Aztec Industries is scheduled for next month. Martina Gomez is preparing for that audit and is also preparing her budget for the coming year.
-Which of these budgets will provide Martina information about planned investments in major assets like buildings and heavy machinery?
A) Cash budget
B) Revenue budget
C) Capital budget
D) Expense Budget
E) Balance-Sheet budget

Question

Quizplus · Accepted Answer

The capital budget is the budget that provides information about planned investments in major assets like buildings and heavy machinery. The other budgets listed do not provide this type of information. The cash budget shows expected cash inflows and outflows, the revenue budget predicts revenue, the expense budget predicts costs, and the balance-sheet budget is a statement of assets, liabilities, and equity at a specific point in time.

CASE Scenario - Martina Gomez