Holding All Other Variables Constant, an Increase in the Cost

question 79

Multiple Choice

Holding all other variables constant, an increase in the cost of equipment at the beginning of the project would affect which of the following?

• A)Initial Outlay
• B)Incremental cash flows
• C)Opportunity costs
• D)Both a & b

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, serving as a preliminary step to financial statement preparation.

Chart of Accounts

A systematic list of all account titles and numbers used by a company, organized to support the recording of transactions.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to verify that the ledger accounts are correctly balanced.

Ledger Balances

The current totals in ledger accounts, reflecting all transactions up to a given point in time.