GK
ACCOUNTING
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 Question 
 [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
 
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 Which is the element of capital budgeting decision? 
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  A long term effect 
 
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  A long term investment 
 
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  Capital expenditure project 
 
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  All of the above 
 
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 Explanation: 
Detailed explanation-1: -Capital Budgeting Decisions are based on: Incremental Profit. Incremental Cash Flows. Incremental Assets.
Detailed explanation-2: -Answer and Explanation: The correct answer is b. deciding whether or not to open a new store.
Detailed explanation-3: -The duration between the initial investments and the expected returns is long. Organizations usually estimate immense profits. The process implicates high risks. It is a long-term and fixed investment. All projects require significant amounts of funding. More items •13-Dec-2022
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