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Accounting - Capital Budgeting

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A principle difference between operational budgeting and capital budgeting is the time frame of the budget. Because of this difference, capital budgeting:

a. is an activity that involves only the financial staff
b. is done on a rolling budget period basis
c. focuses on the present values of cash flows from investments
d. is concerned with long term net income forecasts

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c. focuses on the present values of cash flows from investments

-- Capital budgets ...

Solution Summary

This solution provides the correct choice to the operational budgeting and capital budgeting question listed, along with an explanation.

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