Question

State with the reason whether you agree or disagree with the following statements.
Capital budget consist of revenue receipts and revenue expenditure.

Answer 1

No, I do not agree with this statement.
capital budget consist of (1) Capital Receipt and (2) Capital Expenditure.

Capital budgeting is the process in which a business determines and evaluates potential large expenses or investments. These expenditures and investments include projects such as building a new plant or investing in a long-term venture.

Thus it includes Capital Receipts and Capital Expenditure which determine the long term costs and incomes for the firm.