GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is the element of capital budgeting decision?
A
A long term effect
B
A long term investment
C
Capital expenditure project
D
All of the above
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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