Q. What are three main types of budgets?

1. Operating budget:

An operating budget is used to manage the day-to-day operations of a business,

and it typically covers the coming year. It can also be referred to as a "forecast" or
"planning" budget, because it helps managers plan for their businesses' future
expenses. The operating budget is usually created at the beginning of each fiscal
year, and it's based on an analysis of actual costs from the previous 12 months.

2. Capital budget:

A capital budget is used to plan for large purchases or investments over time
(typically more than one year), such as purchasing equipment or building a new
facility. A capital budget is often used in conjunction with an operating budget to
help keep track of both short-term and long-term projects that are planned over
multiple years.

3. Cash flow budget:

A cash flow budget helps companies predict how much money they'll have
available at any given time throughout the year—and whether that amount will be
sufficient for them to pay all their bills on time without running into debt or cash
shortages at any point during that period."