A Plan That Lists Dollar Amounts to Be Received from Disposing

question 45

Multiple Choice

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.

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Definitions:

Accounting Choices

The various decisions that management makes regarding the principals, methods, and practices followed in an accounting system.

Equity Book Value

The net asset value of a company as recorded on the balance sheet, calculated as total assets minus liabilities, often used to assess a company's worth.

GAAP Balance Sheet

A balance sheet prepared following Generally Accepted Accounting Principles, showcasing a company's financial position including assets, liabilities, and equity at a specific point in time.

Historical Cost

Historical cost refers to the original monetary value of an asset or expenditure recorded at the time of transaction, without adjusting for inflation or changes in market value.