Which of the Following Is Not a Characteristic of Capital

question 18

Multiple Choice

Which of the following is not a characteristic of capital budgeting post-audits?

• A) They provide feedback to managers regarding the soundness of their decision-making.
• B) They encourage managers to build slack into capital investment proposals.
• C) They are in-depth reviews of completed capital investment projects.
• D) They use both financial and nonfinancial information.
• E) They use only the actual results of the capital investment project.

---

Definitions:

Misrepresentation

Misrepresentation refers to a false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.

Contract Breached

Occurs when one party fails to fulfill their obligations under the terms of a contract, leading to a violation of the agreement.

Damages

A monetary compensation awarded to a person as a remedy for loss or injury caused by the unlawful act or omission of another.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.