Which of the Following Is a Principle of Capital Budgeting

question 30

Multiple Choice

Which of the following is a principle of capital budgeting which states that the calculations of cash flows should remain independent of financing?

• A) generally accepted accounting principle
• B) financing principle
• C) separation principle
• D) WACC principle

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Definitions:

Operating Segment Disclosures

Financial reporting requirements that necessitate entities to disclose income, expense, and other significant information about their operating segments.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction, including the rules and standards for corporate financial reports.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.