How are both cash and capital budgets different from operating budgets

QUESTION

How are both cash and capital budgets different from operating budgets?

What will be an ideal response?

ANSWER

Answer: Capital and cash budgets are financial budgets, meaning they concentrate on the company’s financial goals and the resources needed to achieve them. Operating budgets are not financial budgets—they instead identify a firm’s sales and production goals and specify the costs required to meet those goals.
Explanation: Capital and cash budgets are financial budgets; operating budgets are not.