Which of the following best describes the term "capital rationing"?
A) a method of determining the period within which the cash invested is recouped
B) a process of ranking and choosing among alternative capital investments based on the availability of funds
C) a method which shows the effect of the investment on the company's accrual-based income
D) a process of controlling operating costs when adequate funds are not available
Correct Answer:
Verified
Q2: To determine the investment's net cash inflows,
Q3: Which of the following best describes a
Q4: Payback provides management with valuable information about
Q5: Net present value and internal rate of
Q6: The payback method and the accounting rate
Q8: The accounting rate of return method uses
Q10: The payback period and accounting rate of
Q17: The acquisition or construction of a capital
Q18: Capital rationing is a process adopted when
Q19: An operational asset used for a long
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