The Process of Planning,evaluating,selecting,and Managing the Financing of Long-Term Operating

question 71

Multiple Choice

The process of planning,evaluating,selecting,and managing the financing of long-term operating projects of the company is termed ________.

• A)capital budgeting
• B)capital structure
• C)accounts receivable management
• D)working capital management

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Definitions:

Balance Columns

Columns in an account or ledger used to record the debit and credit balances.

Solvency

Indicates the ability of a company or individual to meet long-term financial obligations; solvency is crucial for staying operational and avoiding bankruptcy.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value.

Working Capital

This refers to the amount by which current assets exceed current liabilities, indicating the liquidity available to a business for day-to-day operations.