Which of the Following Would Not Be Expected to Affect

question 37

Multiple Choice

Which of the following would not be expected to affect the decision of whether to undertake an investment?

• A)income tax rates.
• B)estimates of inflation rates.
• C)sales reductions in other products caused by this investment.
• D)cost of the feasibility study which was conducted for this project.

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Definitions:

Pledging Accounts Receivable

The use of accounts receivable as collateral for a loan.

With Recourse

A term indicating that the seller of the receivable is liable if the debtor fails to pay the owed amount.

Fair Value Designation

The process of assessing the estimated market value of an asset or liability, based on current market conditions and not the historical cost.

IFRS Qualifying Criteria

Specific conditions and standards companies must meet to comply with International Financial Reporting Standards.