Which One of the Following Is an Example of Mutual

question 78

Multiple Choice

Which one of the following is an example of mutual exclusive projects?
I.A piece of land may be used either for the extension of the existing plant or the building of a more efficient headquarters for the company
II.Expanding the plant or relocating the company's head office to a new location

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

---

Definitions:

Reportable Income

Income that must be declared for tax purposes, including earnings from employment, investments, and other sources.

Deferred Tax Asset

An accounting term used to describe a situation in which a company has paid more taxes to the government than it has actually owed during a given period.

Deferred Tax Liability

A tax obligation arising from temporary differences between accounting and tax treatments of certain items, to be paid in the future.

Tax Deductible

Expenses that are subtracted from gross income to reduce taxable income, leading to a decrease in the amount of taxes owed.