Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) Many projects use a resource that the company already owns.
• B) When evaluating a capital budgeting decision, we generally include interest expense.
• C) Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project.
• D) As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.

---

Definitions:

Account

A record in bookkeeping that tracks the financial transactions of a specific asset, liability, equity, revenue, or expense.

Accounts Receivable

Represents money owed to a company by its customers for goods or services sold on credit.

Services

Intangible products provided to consumers, which may include consultancy, maintenance, delivery, or repair services.

Journalize

The process of recording financial transactions in a company's journal, detailing the accounts that are affected and by how much.