Capital budgeting is the process of analyzing:
A) Long-term investments.
B) Short-term investments.
C) Investments with certain outcomes only.
D) Cash outflows only.
E) Operating revenues.

Question

Quizplus · Accepted Answer

Capital budgeting is a process used to evaluate long-term investment decisions that involve large amounts of money. This process helps a company to determine which projects or investments will generate profits in the long run while also taking into account the risks and uncertainties associated with these investments. Therefore, analyzing long-term investments is the best choice for capital budgeting.

Capital Budgeting Is the Process of Analyzing