In Which of the Following Decisions Is a Proposed Project

question 62

Multiple Choice

In which of the following decisions is a proposed project compared to a performance benchmark to determine whether the project should be considered further?

• A)Hurdle
• B)Screening
• C)Performance
• D)Benchmark

---

Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Financing Activity

Transactions and events where cash is raised from creditors and investors to fund the company’s operations and expansions.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing activities.

Dividend Reinvestment Scheme

A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.