The Most Valuable Investment Given Up If an Alternative Investment

question 83

Multiple Choice

The most valuable investment given up if an alternative investment is chosen is referred to as a(n) :

• A)salvage value expense.
• B)net working capital expense.
• C)sunk cost.
• D)opportunity cost.
• E)erosion cost.

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Definitions:

Fiscal Year-End

The end of a company's financial year, a critical date for accounting and financial reporting purposes.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and is taxed on its profits.

Dividends Received Deduction

A tax deduction that a corporation can claim for dividends received from other corporations within the same tax group.

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a given tax year.