You Are Considering a Project That You Believe Is Quite

question 35

Multiple Choice

You are considering a project that you believe is quite risky.To reduce any potentially harmful results from accepting this project,you could:

• A)lower the degree of operating leverage.
• B)lower the contribution margin per unit.
• C)increase the initial cash outlay.
• D)increase the fixed costs per unit while lowering the contribution margin per unit.
• E)lower the operating cash flow of the project.

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Definitions:

Journalized Closing Entries

These are the final entries made in the accounting ledger to close the books at the end of an accounting period, ensuring that income and expense accounts are properly reset for the next period.

Adjusting Entries

Journal entries made at the end of an accounting period to update the ledger for items that are not recorded during the operating period.

Financial Statements

Reports that summarize the financial performance and position of a business, including balance sheet, income statement, and cash flow statement.

End-Of-Period Spreadsheet

A financial document used to gather and adjust account information from the ledger in order to prepare financial statements at the end of an accounting period.