Capital Budgeting: Definition & Process


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question 1 of 3

Which of the following is a capital asset?

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1. Which of the following is a benefit of capital budgeting?

2. Which of the following is a component of incremental cash flow?

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About This Quiz & Worksheet

What is capital budgeting and why is it important? Test your knowledge of this type of budgeting and how it works by using the quiz and worksheet.

Quiz & Worksheet Goals

These materials let you test your comprehension of:

  • Examples of a capital asset
  • What a capital asset is
  • Operating cash flow
  • Components of incremental cash flow
  • Benefits of capital budgeting

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on the capital budgeting process
  • Defining key concepts - make sure that you accurately define main phrases, such as capital asset and operating cash flow
  • Making connections - use understanding of the concept of capital budgeting and the benefits it offers

Additional Learning

You can learn more using the lesson named Capital Budgeting: Definition & Process. These tasks can be completed:

  • Determine what capital expenditures represent
  • Review the characteristics of a capital asset
  • Define terminal cash flow