Capital budgeting decisions generally involve:
A) the fixed asset portion of the balance sheet.
B) the short-term portion of the balance sheet.
C) the current liability portion of the balance sheet.
D) all of the above.

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve the fixed asset portion of the balance sheet because they relate to the long-term investments in assets such as property, plant, and equipment, which have a significant impact on the company's financial position and performance. The short-term portion of the balance sheet and the current liability portion are focused on the company's working capital management and day-to-day operations, which are not directly related to capital budgeting decisions.

Capital Budgeting Decisions Generally Involve