While most accounting decisions focus on income,most capital budgeting decisions focus on

Question

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Capital budgeting decisions involve determining which long-term investments a company should make in order to grow and improve profitability. Therefore, the focus is on cash flows, specifically evaluating the expected future cash flows generated by each potential investment and comparing them to the initial investment cost. While costs and expenses are important factors, they are considered in relation to the potential cash flows generated by the investment. Need is also a consideration but is not the primary focus of capital budgeting decisions.

While Most Accounting Decisions Focus on Income,most Capital Budgeting Decisions