Which of the Following Is NOT Part of the Capital

question 54

Multiple Choice

Which of the following is NOT part of the capital budgeting process?

• A) develop short-term operating strategies
• B) identify and analyze potential capital investments
• C) apply capital rationing
• D) perform post-audits

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Definitions:

Contra Equity Account

An equity account where balances are opposite to the normal accounts and are used to reduce the value of equity accounts.

Voting Rights

The entitlements of shareholders to vote on company matters, typically proportional to the number of shares they hold.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the company.

Cash Dividend

Cash payments issued to a certain category of stockholders out of a firm's profits, as resolved by the board of directors.