Purchases of buildings are formally planned for in the:
A) depreciation budget.
B) budgeted balance sheet.
C) capital expenditure budget.
D) selling and administrative expense budget.

Question

Quizplus · Accepted Answer

Capital expenditure budget formally plans for the purchases of long-term assets such as buildings. Depreciation budget deals with the accounting recognition of the cost of the asset over its useful life. Budgeted balance sheet shows the assets, liabilities, and equity of the organization at a given point in time, it does not plan for specific purchases. Selling and administrative expense budget deals with the expenses associated with selling and administrative functions, and not with capital expenditures.

Purchases of Buildings Are Formally Planned for in The