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A budget that reports expected cash receipts and cash payments related to the sale and purchase of plant assets is called a: Multiple Choice Cash budget. Capital expenditures budget. Rolling budget. Sales budget. Production budget.

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A budget that reports expected cash receipts and cash payments related to the sale and purchase of plant assets is called Capital expenditures budget

  • Capital expenditures budget shows the cash  amounts estimated to be used up for  the purchase of additional plant assets or expected from the sale of plant asset.

  • Most Capital expenditures are usually for huge projects or for long term assets.

  • After  a financial evaluation to estimate if a  company's return on investment targets are met, The Capital expenditure budget can then be reviewed to see what project to be done.

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