Question

Securitas Financial Services is contemplating purchasing and installing a new, expensive computer network. This is the type of expenditure that would be

included in a(n)

Answer 1

capital budget.

Multiple-Choices

capital budget.

cash budget.

operating budget.

asset budget.

Step-by-step explanation:

A capital budget is an estimate of capital expenditure requirements. It is a formal plan that details the fixed assets that a business intends to acquire. A capital budget is part of the annual budget for an organization.

Capital budgets are prepared for assets with a useful life of more than one year. These assets help generate revenue for the business for many years. Capital expenses usually involve heavy cash outflow and are prepared after wide consultations with relevant departments and authorities.