Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

Which of the following is a capital budgeting decision?

Deciding whether to purchase new manufacturing equipment

Approving employee travel expenses

Selecting a supplier for office supplies

Determining the amount of cash to keep in the petty cash fund

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Verified step by step guidance

Understand the concept of capital budgeting: Capital budgeting involves evaluating and deciding on long-term investment projects, such as purchasing equipment, constructing facilities, or launching new products. These decisions typically require significant financial resources and impact the company's future operations and profitability.

Analyze the options provided in the question: Review each option to determine whether it involves a long-term investment decision or a routine operational expense.

Option 1: Deciding whether to purchase new manufacturing equipment. This is a capital budgeting decision because it involves evaluating a long-term investment that will impact the company's production capacity and financial performance over time.

Option 2: Approving employee travel expenses. This is not a capital budgeting decision because it pertains to routine operational expenses and does not involve a long-term investment.

Option 3: Selecting a supplier for office supplies and Option 4: Determining the amount of cash to keep in the petty cash fund. Both are operational decisions and do not involve long-term investments, so they are not capital budgeting decisions.