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:

Outstanding

Something that is exceptionally good or remaining unpaid or unresolved.

Indenture

A formal legal agreement, contract, or document, especially one regarding debt or bonds, specifying terms and conditions.

Debt Agreement

A formal arrangement between a debtor and creditors which outlines the terms of debt repayment.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.