Capital Budgeting Is

question 26

Multiple Choice

Capital budgeting is:

• A) The continual evaluation of the profitability of the various product lines and divisions.
• B) The systematic planning for long-term investments in operating assets.
• C) Broad, long-range planning.
• D) Planning decisions regarding current operations and those of the immediate future.

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Definitions:

Small NFPOs

Not-for-profit organizations that are relatively small in scale, size, or financial activity.

Revenue Recognized

The process of recording income when it is earned and realized or realizable, according to the principles of accounting.

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.