Question

In the capital budgeting process, accountants are NOT involved in ________. A) follow-up monitoring of investments...

In the capital budgeting process, accountants are NOT involved in ________. A) follow-up monitoring of investments B) choosing which investments to make C) gathering data to aid the investment decision D) identifying potential investments

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required answer is option D i.e. Identifying potential investment.

Explanation:

Capital budgeting process is investment making decision which required heavy investment and involvemnet of top level management therefore accountant does not play any vital role in any decision making however an accountant helps to top level managers to take right decision.

An accountant can involve in taking decision about which investment to make with top level manager however an accountant is not involved in identifying potential investment because he is completly unaware about it.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Capital budgeting is the process of doing which of the following? Group of answer choices Making...
Capital budgeting is the process of doing which of the following? Group of answer choices Making certain adequate capital is available to pay bills when they come due. Budgeting for public finance projects. Identifying, evaluating, and implementing a firm’s investment opportunities. Allocating capital among bonds and stocks.
1.Capital budgeting is for situations in which managers must plan significant outlays for projects that have...
1.Capital budgeting is for situations in which managers must plan significant outlays for projects that have long term implications. T F 2.Capital budgeting is for situations in which large amounts of money usually involved. T F 3.One of the considerations in investment decision considerations is choosing the project with the most profitable return on available funds. T F
7. Which of the following is correct with respect to working capital and capital budgeting? a....
7. Which of the following is correct with respect to working capital and capital budgeting? a. Investment in working capital is ignored in the capital budgeting process b. Working capital usually has a different discount rate c. Investment in working capital is assumed to be recovered at the end of the life of the project d. All of the above are correct
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm 's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all...
Which one of the following would not be a part of the capital budgeting process? Select...
Which one of the following would not be a part of the capital budgeting process? Select one: a. Estimating the cash inflows/outflows of a potential new asset b. Determining how much debt should be used to purchase a new asset c. Conducting market research to determine demand for a modified product d. Projecting multiple years of sales growth to determine capacity (asset) constraints One of the most important goals of budgeting is: Select one: a. Determining the cash needs of...
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...
Which of the following is FALSE? Select one: a. Capital budgeting is the process of evaluating...
Which of the following is FALSE? Select one: a. Capital budgeting is the process of evaluating and selecting short-term investments that are consistent with the firm's goal of maximizing owners' wealth. b. The purchase of additional physical facilities, such as additional property or a new factory, is an example of a capital expenditure. c. Capital budgeting techniques are used to evaluate a firm's fixed asset investments which provide the basis for the firm's earning power and value. d. Capital expenditure...
1.What is the limitation of using the net present value for evaluating capital investment alternatives? a....
1.What is the limitation of using the net present value for evaluating capital investment alternatives? a. Ignores the time value of money b. Does not consider cash flows c. Cannot be used to compare projects of different size d. All of the above are limitations of the net present value method. 2.Which of the following is NOT part of the capital budgeting process? a.Project identification b.Project evaluation c.Project monitoring d.All of the above are parts of the capital budgeting process.
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...
1. Under conditions of capital rationing (i.e., limited capital funds are available), the optimal allocation of...
1. Under conditions of capital rationing (i.e., limited capital funds are available), the optimal allocation of funds to capital investment projects occurs when management uses which one of the following decision models? a. Internal Rate of Return (IRR) b. Discounted accounting rate of return c. Profitability Index (PI) d. Discounted Payback (WRONG ANSWER) e. Modified Internal Rate of Return (MIRR). 2. The payback period for evaluating capital investment projects emphasizes: a. Average net income divided by average investment b. Average...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT