Which of the Following Statements Is Incorrect

question 78

Multiple Choice

Which of the following statements is incorrect?

• A) Capital budgeting affects the master budget because it considers what assets a company should have and use when achieving its budgets.
• B) Capital budgeting involves decisions as whether to buy or lease equipment.
• C) Capital budgeting focuses on short-term planning.
• D) Cash outflows for capital budgeting will appear on the cash budget .

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Definitions:

Exit Strategies

Plans developed by a business or investor to sell, liquidate, or otherwise exit their position in an investment at an appropriate time.

Due Diligence

The investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or transaction with another party.

Early-Stage Financing

A stage of financing that involves larger funds provided for companies that have a team in place and a product or service tested or piloted, but have little or no revenue.

Seed-Stage Financing

A stage of financing in which small or modest amounts of capital are provided to entrepreneurs to prove a concept.