Question

The process of planning and managing a firm's investment in non-current assets is known as:

A. working capital management

B. financing decision

C. capital budgeting

D. earnings decision  

Answer 1

Please find below explanation and “ Don’t forget to give a like! Thank you”

Answer: C) capital budgeting

The process of planning and managing a firms long term investments is called capital

Budgeting

Non current assets are a company’s long term investments for which the full value will

Not be realized within the accounting year.

Capital budgeting involves decision relating to long term commitment of fund. Since,

long term commitment of fund increases the risk, the more the risk, the more the importance

of capital budgeting.

The process of planning and managing a firms investment in non-current assets is known

as capital budgeting.   

Working capital management refers to the efforts of management towards effective

management of current assets and Current liabilities.

Financing decisions are the financial decisions related to raising of finance

Earnings management refers to reasonable and legal management decision making

and reporting intended to achieve stable and predictable financial results.