Capital budgeting involves ________.
A) budgeting for yearly operational expenses
B) preparing the sales budget for the coming year
C) evaluating various long-term investments
D) analyzing various alternatives of financing available to a company

Question

Quizplus · Accepted Answer

Capital budgeting refers to the process of evaluating long-term investments that involve significant cash outflows in the present to generate future cash inflows. Options A, B, and D are related to budgeting for operational expenses, preparing sales budget, and analyzing financing options, respectively, which are not part of capital budgeting.

Capital Budgeting Involves ________