Since the Focus of Capital Budgeting Is on Cash Flows

question 31

True/False

Since the focus of capital budgeting is on cash flows rather than on net income, changes in noncash balance sheet accounts such as inventory are not included in a capital budgeting analysis.

---

Definitions:

Future Generations

Refers to the populations that will live in the future, inheriting the legacy of today's societal, environmental, and economic conditions.

Environmentalism

A movement of citizens, government agencies, and the business community that advocates the preservation, restoration, and improvement of the natural environment.

Life Cycle Assessment

A technique for assessing the environmental impacts associated with all the stages of a product's life from raw material extraction through materials processing, manufacture, distribution, use, repair, maintenance, and disposal or recycling.

Apparel Industry

The sector of the economy that is involved in the design, production, and distribution of clothing and accessories.