Which of the Following Best Defines Incremental Earnings

question 96

Multiple Choice

Which of the following best defines incremental earnings?

• A) cash flows arising from a particular investment decision
• B) the amount by which a firm's earnings are expected to change as a result of an investment decision
• C) the earnings arising from all projects that a company plans to undertake in a fixed time span
• D) the net present value (NPV) of earnings that a firm is expected to receive as the result of an investment decision

---

Definitions:

Balance-Of-Payment

A record of all financial transactions made between a country and the rest of the world within a specific period.

Deficits

The amount by which a government's expenditures exceed its revenue.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Rubles

The official currency of Russia, symbolized as RUB, used for all financial transactions within the country.