Spartan Furniture wants to estimate its expenditures for purchasing lo

QUESTION

Spartan Furniture wants to estimate its expenditures for purchasing long-term assets that require significant sums of money. Which type of budget does it need?

A) capital budget
B) cash budget
C) master budget
D) operating budget
E) discretionary budget

ANSWER

Answer: A
Explanation: A) Capital budgets estimate a firm’s expenditures for purchasing long-term assets that require significant sums of money.