Classical

Financial Accounting - Financial Accounting Objective Type Questions

31:  

Capital budgeting is also known as

A.

Planning Capital expenditure

B.

Capital Expenditure Decisions

C.

Investment Decision making

D.

All of the above

 
 

Option: D

Explanation :


32:  
Which of the following recognises risk in capital budgeting analysis by adjusting estimated cash flows and employs risk-free rate to discount the adjusted cash flows?
A.

Cash

B.

Certainty Equivalent Approach

C.

Pay-back Period

D.

Inventory

 
 

Option: B

Explanation :


33:  

Capital budgeting process involves

A.

Establishing Priorities

B.

Performance Review

C.

Final approval

D.

All of the above

 
 

Option: D

Explanation :


34:  
If cash inflows are not uniform, the calculation of pay-back period takes a
A.

Common Profit

B.

Favourable Position

C.

Cumulative Form

D.

All of the above

 
 

Option: C

Explanation :


35:  

Which is a approach of valuation?

A.

Asset based approach to valuation

B.

Earnings based approach to valuation

C.

Market value based approach to valuation

D.

All of the above

 
 

Option: D

Explanation :




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