Capital budgeting decisions generally have the most effect on:
A) the 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 investing in long-term assets such as property, plant, and equipment. As a result, these decisions have the greatest impact on the asset portion of the balance sheet.

Capital Budgeting Decisions Generally Have the Most Effect On