Review article - companies review capital budgets for saving


Question: According to the article "Companies Review Capital Budgets for Savings in Uncertain Economy", which of the following statement is incorrect? Question options: Companies tend to trim or delay capital spending when facing stronger demand. Trimming or delaying capital projects can help finance chiefs conserve cash in time of uncertainty. Cutting down capital expenditure may slow down a company's growth plans. Capital expenditures are investments in areas such as property, equipment and technology that companies make to expand and generate additional sales. Companies that spend heavily on capital projects while revenue declines could put themselves at risk of being overleveraged.

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Accounting Basics: Review article - companies review capital budgets for saving
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