GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capital budgeting investment decision involve
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Long term assets
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Capital expenditure
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A long term function
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All of the above
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Explanation:
Detailed explanation-1: -Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business. It involves conducting a thorough evaluation of risks and returns before approving or rejecting a prospective investment decision. This process is also known as investment appraisal.
Detailed explanation-2: -Answer and Explanation: The correct answer is b. deciding whether or not to open a new store.
Detailed explanation-3: -Capital budgeting decisions are based on comparison of a project’s initial investment outlay to the future incremental cash flows of the project and its terminal cash flow. Was this answer helpful?
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