apter 9 Assignment Attempts: Average: 12 2. The importance of capital budgeting and post-audits Capital budgeting decisions are among the most important decisions that financial managers make. Indicate whether each of the following statements regarding capital budgeting is true or false. rue Falso Statements Capital budgeting is the long-term planning for the purchase of assets whose cash flows extend beyond one year. Post-audits are generally a waste of time, because it is nearly impossible for actual results to match forecasted results, A post-audit involves comparing actual results with forecasted results. COM Effective capital budgeting improves the timing and quality of the assets purchased. Capital projects are either mutually exclusive or independent. Which of the following phrases correctly describe mutually exclusive projects? Check on that apply. Projects that, whether accepted or rejected, do not affect the cash flows of other projects Those projects that, if rejected, preclude the acceptance of all other competing projec Those projects that, if accepted, preclude the acceptance of all other competing projects Those projects that are best analyzed without considering the time value of money Project choices that rule out competing project choices Grade R Now Save & Continue Continue without saving