"Capital budgeting has the same focus as accrual$$ accounting." Do you$$ agree? Explain.

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Part $1$

A$.$

Yes. While capital budgeting examines an individual investment and accrual accounting examines the collective investments of a$$ business, both capital budgeting and accrual accounting focus on the income earned from investments over their expected lives.

B$.$

Yes. While capital budgeting uses a discounted cash flow analysis and accrual accounting uses an accrued income$$ analysis, both capital budgeting and accrual accounting focus on making$$ long$-$run planning decisions for investments in projects.

C$.$

No$.$ Capital budgeting focuses on a particular accounting$$ period, often a$$ year, with an emphasis on income determination. Accrual accounting focuses on activities that extend over multiple$$ periods, often longer than a$$ year, and recognizes the time value of money.

D$.$

No$.$ Capital budgeting focuses on an individual investment project throughout its$$ life, which is often longer than a$$ year, and recognizes the time value of money. Accrual accounting focuses on a particular accounting$$ period, often a$$ year, with an emphasis on income determination.