GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not followed in capital budgeting?
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Accrual Principle
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Post-tax Principle
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Cash flows principle
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Interest Exclusion Principle
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Explanation:
Detailed explanation-1: -9. Which of the following is not followed in capital budgeting? Post-tax Principle.
Detailed explanation-2: -Accrual principle is not followed in capital budgeting.
Detailed explanation-3: -Decisions like constructing a new factory, purchasing heavy machinery for production or making a significant investment in an outside business entity are examples of Capital Budgeting.
Detailed explanation-4: -Which of the following is not a capital budgeting decision? Capital budgeting is not used to decide what inventory to buy next year because capital budgeting involves large expenses of investments just like the buying a sales office facility, purchasing equipment, expanding a management information system.
There is 1 question to complete.