Which One of the Following Would Not Be Included as a Traditional

question 80

Multiple Choice

Which one of the following would not be included as a traditional capital budgeting project?

• A) Machine replacement proposals
• B) Salary adjustment proposals
• C) New product proposals
• D) Plant expansion proposals

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.

Cash Collections

are the payments received by a company from its customers in exchange for goods or services sold on credit.

Cumulative Surplus

The total amount of net income that a company retains over its life, after distributing dividends to shareholders.