Which of These Is the Allocation and Reallocation of Capital

question 72

Multiple Choice

Which of these is the allocation and reallocation of capital and resources to projects, products, assets and divisions of an organization?

• A) Investment decision
• B) Dividend decisions
• C) Financing decisions
• D) Restructuring decisions
• E) Strategic decision

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Definitions:

Fixed Assets

Tangible assets, such as buildings, machinery, and equipment, used in the operations of a business that are not intended for sale.

Insurance Policy

A contract between an insurer and policyholder specifying the terms for the payment of claims to the insured or their beneficiaries in the event of a covered loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate accounting period.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.