An Investment Decision Differs from a Financing Decision in That

question 100

Multiple Choice

An investment decision differs from a financing decision in that:

• A) investment decisions relate to assets that the firm has invested in, while financing decisions relate to the firm's financial assets.
• B) an investment decision first determines what assets the firm will invest in, while a financing decision considers if the existing investments should be refinanced.
• C) a financing decision first determines what financial assets the firm will invest in, while an investment decision considers how the funds will be invested.
• D) an investment decision first determines what assets the firm will invest in, while a financing decision considers how the investments under consideration are to be funded.

---

Definitions:

Adjusted Balance

The method of calculating finance charges on a credit account by subtracting payments or credits received during the billing cycle from the balance at the end of the billing cycle.

Check Register

A record-keeping tool used to track checks written, deposits made, and the current balance of a checking account.

Bank Statement

A document issued by a bank that summarizes a customer's financial transactions and balance over a specific period.

Service Charge

A fee collected for services provided, often added to bills in restaurants, hotels, or banking services.