In What Stage of the Capital Budgeting Process Do Managers

question 70

Multiple Choice

In what stage of the capital budgeting process do managers forecast all potential cash flows attributable to the alternative projects?

• A)Stage 1: Identify projects.
• B)Stage 2: Obtain information.
• C)Stage 3: Make predictions.
• D)Stage 4: Make decisions by choosing among alternatives.
• E)Stage 5: Implement the decision,evaluate performance,and learn.

---

Definitions:

Accrued Expense

Costs that have been incurred for goods or services but have not yet been paid for or recorded in the financial statements.

Accrued Revenues

Revenues that have been earned (through the delivery of goods or services) but not yet received in cash or recorded.

Goods

Physical items that are produced or purchased for sale by a business.