Which of the following is true of a capital expenditures budget?
A) It summarizes plans for acquiring fixed assets.
B) It indicates all the estimated cash receipts and cash payments for a period of time.
C) It records all short-term expenses for a period.
D) It lists all the transactions related to capital stock.

Question

Quizplus · Accepted Answer

A capital expenditures budget summarizes plans for acquiring fixed assets, such as buildings, equipment, or land. It is a tool used to plan and track the long-term investments that a company will make. Option B is referring to a cash budget, option C is referring to an operating budget, and option D is referring to a stockholders' equity budget, none of which are the same as a capital expenditures budget.

Which of the Following Is True of a Capital Expenditures