CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which of the following statements is correct?

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 !
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