Which one of the following is not a reason why a company should carefully plan its capital

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Which one of the following is not a reason why a company should carefully plan its capital investment decisions?

a. Capital investments usually require a large initial outlay of capital.

b. Capital investments are usually tied to management bonus plans.

c. Capital investment decisions affect earnings over a long period of time.

d. Capital investments are less liquid, so poor investment decisions are difficult to reverse.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 28, 2011 04:55 AM

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Which one of the following is not a reason why a company should carefully plan its capital

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The correct answer is B Although the success of capital inv...View the full answer

Accounting concepts and applications

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