The Two Cardinal Rules Which Financial Analysts Follow to Avoid

question 8

True/False

The two cardinal rules which financial analysts follow to avoid capital budgeting errors are: (1) capital budgeting decisions must be based on accounting income, and (2) only incremental cash flows are relevant to accept/reject decisions.

---

Definitions:

Immunoassay Analyses

Laboratory methods that use antibodies to detect and quantify substances, such as hormones, enzymes, and drugs, in a sample.

Limitation

A restriction or boundary that confines the scope or extent of something, often referring to constraints in studies, projects, or capabilities.

Cisplatin

A chemotherapy drug used to treat various types of cancer by interfering with DNA replication in cancer cells.