Projects Are Mutually Exclusive If Picking One Project Eliminates the Ability

question 51

Multiple Choice

Projects are mutually exclusive if picking one project eliminates the ability to pick the other project.This mutually exclusive situation can arise for different reasons.Which of the statements below is NOT one of these reasons?

• A)One project will always have a negative NPV.
• B)There is a scarce resource that both projects would need.
• C)There is need for only one project,and both projects can fulfill that current need.
• D)By using funds for one project,there are not enough funds available for the other project.

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Definitions:

Accounting System

A methodical procedure of accurately and timely recording and organizing financial transactions and information.

General Journal

A primary accounting record used for recording all types of transactions and events, ensuring every financial activity is documented.

Special Journal

A financial journal designed for recording a specific type of transaction in a more efficient manner.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.