A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:
A) Cash budget.
B) Capital expenditures budget.
C) Rolling budget.
D) Sales budget.
E) Production budget.

Question

Quizplus · Accepted Answer

A capital expenditures budget outlines the planned purchases and sales of plant assets over a specific period. It includes dollar amounts for disposing of current assets and purchasing new assets. A cash budget, on the other hand, outlines the cash inflows and outflows for a specific period, including operating expenses, financing activities, and investments. Rolling budgets are updated continuously throughout the year. Sales and production budgets focus on expected revenue and production levels, respectively, and do not include information on plant asset transactions.

A Plan That Lists Dollar Amounts to Be Received from Disposing