Investments of large amounts of cash in plant assets are called ________.

Question

Quizplus · Accepted Answer

Large amounts of cash invested in plant assets are referred to as capital outlays. Option A, cash outflows, is a more general term that can refer to any cash leaving the organization. Option B, capital budgeting, refers to the process of planning and allocating resources for capital projects. Option C, capital projects, refers to specific projects that require large investments of capital, but does not encompass all types of plant asset investments.

Investments of Large Amounts of Cash in Plant Assets Are