Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as

The correct answer is: B. capital budget

A capital budget is a financial plan for a company’s long-term investments in fixed assets, such as property, plant, and equipment. It is a part of the master budget, which is a comprehensive financial plan for the entire company. The capital budget includes the following:

• A list of all proposed capital expenditures
• The estimated cost of each expenditure
• The expected benefits of each expenditure
• The financing plan for each expenditure

The capital budget is used to make decisions about which investments to make and how to finance them. It is also used to track the progress of capital projects and to ensure that they are completed on time and within budget.

The other options are incorrect for the following reasons:

• A financial budget is a plan for the company’s short-term financial needs, such as cash flow and working capital.
• A cash flows budget is a detailed plan for the company’s expected cash receipts and disbursements over a specified period of time.
• A balanced budget is a budget in which revenues equal expenses.