If Project a Has a Cost of $2 and Provides

question 47

Multiple Choice

If Project A has a cost of $2 and provides a benefit of $3 and Project B has a cost of $5 and provides a benefit of $8,which of the following statements is true?

• A) The net benefit of Project A is $5.
• B) An individual can optimize by choosing Project B.
• C) Project A has a higher net benefit than Project B.
• D) A shift from Project A to Project B increases the net benefit by $1.

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Definitions:

Journal Entries

The method by which financial transactions are recorded in the accounting records of a business, detailing the accounts affected and the amounts.

Maturity Date

The date on which a financial obligation must be repaid or a bond or other instrument reaches its expiration and the principal is due back to the investors.

Note Receivable

A claim or debt that one party owes to another under the terms of a promissory note, indicating money to be received.

Perpetual Inventory System

An inventory management system where records of inventory quantities are updated on a continuous basis as transactions occur.