The correct answer is: D. Both B and C
A cash budget is a projection of a company’s cash inflows and outflows over a specified period of time, typically a month or quarter. It is used to ensure that the company has enough cash on hand to meet its obligations.
A capital expenditure budget is a plan for how a company will spend its money on long-term assets, such as property, plant, and equipment. It is used to ensure that the company is investing in the right assets to support its growth.
A research and development budget is a plan for how a company will spend its money on research and development activities. It is used to ensure that the company is investing in the right research and development projects to create new products and services.
Both cash budgets and capital expenditure budgets are examples of long-term budgets because they are used to plan for future expenditures. Research and development budgets are also examples of long-term budgets because they are used to plan for future research and development activities.
Here is a brief explanation of each option:
- A. Cash budget is a projection of a company’s cash inflows and outflows over a specified period of time, typically a month or quarter. It is used to ensure that the company has enough cash on hand to meet its obligations.
- B. Capital expenditure budget is a plan for how a company will spend its money on long-term assets, such as property, plant, and equipment. It is used to ensure that the company is investing in the right assets to support its growth.
- C. Research and development budget is a plan for how a company will spend its money on research and development activities. It is used to ensure that the company is investing in the right research and development projects to create new products and services.
- D. Both B and C are examples of long-term budgets because they are used to plan for future expenditures.