Asked by sauli Lianga on Jul 15, 2024
Verified
A capital expenditures budget is prepared before the operating budgets.
Capital Expenditures Budget
A budget summarizing plans for acquiring fixed assets.
Operating Budgets
Detailed plans that outline expected revenue and expenses over a certain period, focusing on the day-to-day operations of an organization.
- Learn the sequence in which different component budgets are prepared.
Verified Answer
EJ
Elizabeth JohnsonJul 17, 2024
Final Answer :
False
Explanation :
The operating budgets are prepared before the capital expenditures budget because the operating budgets provide necessary details on expected revenues and expenses, which help in determining the funds available for capital expenditures.
Learning Objectives
- Learn the sequence in which different component budgets are prepared.
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