Questions: Capital budgeting is required to determine the appropriate mix of and revenue debt assets expenses

Capital budgeting is required to determine the appropriate mix of and revenue debt assets expenses
Transcript text: Capital budgeting is required to determine the appropriate mix of $\qquad$ and $\qquad$ revenue debt assets expenses
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Solution

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The answer is debt and assets.

Explanation

Capital budgeting is a process that companies use to evaluate potential major projects or investments. It involves determining the appropriate mix of debt and assets to ensure that the company can finance its projects effectively while maintaining a balanced financial structure.

Option 1: revenue

Revenue is the income generated from normal business operations and is not directly related to the capital budgeting process, which focuses on long-term investments and financing.

Option 2: debt

Debt refers to borrowed funds that a company can use to finance its projects. It is a crucial component in capital budgeting as it affects the company's leverage and cost of capital.

Option 3: assets

Assets are resources owned by a company that have economic value. In capital budgeting, assets are the investments or projects that the company is considering, such as new equipment, buildings, or technology.

Option 4: expenses

Expenses are the costs incurred in the process of earning revenue. While they are important for overall financial management, they are not the primary focus of capital budgeting, which is more concerned with long-term investments and financing.

Therefore, the appropriate mix in capital budgeting involves debt and assets.

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