- CFA Exams
- CFA Exam: Level I 2021
- Study Session 10. Corporate Finance (1)
- Reading 32. Capital Budgeting
- Subject 1. Capital Budgeting: Introduction
CFA Practice Question
Which of the following statements is correct?
II. Capital budgeting is the process of scheduling and managing the short-term cash flows of a firm.
III. Capital budgeting is the process of analyzing projects and deciding which ones to accept.
I. Capital budgeting is the process of choosing the types of debt and equity that will be used to finance investment projects.
II. Capital budgeting is the process of scheduling and managing the short-term cash flows of a firm.
III. Capital budgeting is the process of analyzing projects and deciding which ones to accept.
Correct Answer: III
User Contributed Comments 4
| User | Comment |
|---|---|
| MRSLETS | got it |
| DonAnd | Capital budgeting is the process that companies use for decision making on capital projects |
| fabsan | I = Capital structure decision II = Working capital management decision |
| JLWM | Thanks for the clarification fabsan ! |