Author Question: Capital budgeting differs from cash budgeting in that (Read 52 times)

najmarocks25 · **on:** Feb 5, 2023

Question 1

The process of evaluating an organization's investment in long-term assets is called
◦ capital budgeting.
◦ a preference decision.
◦ investment control.
◦ activity-based evaluation.

Question 2

Capital budgeting differs from cash budgeting in that
◦ cash budgeting focuses on short-term results while capital budgeting focuses on five, ten, or even twenty years in the future.
◦ cash budgeting focuses on the balance sheet while capital budgeting focuses on the income statement.
◦ cash budgeting is based on cash-basis accounting while capital budgeting is based on accrual-basis.
◦ a cash budget contains only expected cash outflows for capital assets while capital budgeting includes both cash inflows and outflows.

GoldenBrown · **Reply #1 on:** Feb 5, 2023

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