GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Arrange the following steps involved in capital budgeting in order of their occurrence (i) Project Selection (ii) Project appraisal (iii) Project generation (iv) Follow up (v) Project execution
A
(i), (ii), (iii), (v), (iv)
B
(i), (iii), (ii), (v), (iv)
C
(ii), (iii), (i), (v), (iv)
D
(iii), (ii), (i), (v), (iv)
Explanation: 

Detailed explanation-1: -Identify and evaluate potential opportunities. Estimate operating and implementation costs. Estimate cash flow or benefit. Assess risk. Implement. Was this answer helpful?

Detailed explanation-2: -The process of capital budgeting includes 6 essential steps and they are: identifying investment opportunities, gathering investment proposals, decision-making processes, capital budget preparations and appropriations, and implementation and review of performance.

Detailed explanation-3: -Identification of Investment Opportunities. Development and Forecast of Benefits and Costs. Evaluation of Net Benefits. Authorization for Progressing and Spending Capital Expenditure. Control of Capital Projects. 03-Dec-2021

Detailed explanation-4: -Identify and evaluate potential opportunities. The process begins by exploring available opportunities. Estimate operating and implementation costs. Estimate cash flow or benefit. Assess risk. Implement. 29-Nov-2015

Detailed explanation-5: -Step 1 – Determining the Total Amount of the Investment. Step 2 – Determining the Cash Flows that the Investment will return. Step 3 – Determining the residual/terminal value. Step 4 – Calculating the annual cash flows of the investment. Step 5 – Calculating the NPV of the cash flows. More items •06-Mar-2023

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