Capital Budgets Allocate

question 38

Multiple Choice

Capital budgets allocate:

• A)Cash flows to functioning activities.
• B)Supply to demand.
• C)Scarce capital among available investment opportunities.
• D)Productive capacity among products.
• E)None of the above.

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Definitions:

Face Amount

The nominal or dollar value printed on a financial instrument, such as a bond or life insurance policy, representing the amount due at maturity.

Maturity Value

The amount payable to an investor at the maturity date of an investment, including the principal and any remaining interest.

Maker

The party in a financial transaction who creates or issues the instrument, such as a check writer or bond issuer.

General Ledger

A comprehensive record of all financial transactions over the life of a company, serving as the primary source of data for financial reporting.