Carolina 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) cash budget.
C) operating budget.
D) asset budget.

Question

Quizplus · Accepted Answer

The purchase and installation of an expensive computer network is a long-term investment and would be included in a capital budget, which outlines expenditures for long-term assets and investments. A cash budget outlines expected cash inflows and outflows in the short term, an operating budget outlines expenses and revenues for the day-to-day operations of a business, and an asset budget does not typically exist as a separate budget but may be included in a capital budget.

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