Tips Tips 2. The importance of capital budgeting and post-audits Indicate whether each of the following statements is true or false. Statements An incentive program that encourages new ideas, whether for new products or better processes, is a good way to generate capital investment proposals. Capital budgeting is the long-term planning for the purchase of assets whose cash flows extend beyond one year. A post-audit involves comparing actual results with forecasted results. Capital budgeting is about forecasting the need for cash and other short-term assets. Capital projects are either mutually exclusive or independent. Which of the following statements are correct? Check all that apply. The decision to accept or reject a project may depend on whether the project is independent or mutually exclusive. Mutually exclusive projects are projects that, whether accepted or rejected, do not affect the cash flows of other projects. Acceptance a mutually exclusive project precludes the acceptance of any competing project. Acceptance or rejection of an independent project does not affect the cash flows of other projects. True O O False O O O

Indicate whether each of the foliowing statements is true or false. Indicate whether each of the foliowing statements is true or false