Projects That, If Accepted or Rejected, Will Not Affect the Cash

question 33

Multiple Choice

Projects that, if accepted or rejected, will not affect the cash flows of another project are

• A) priority projects
• B) mutually exclusive projects
• C) independent projects
• D) equity projects

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Definitions:

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be converted to cash in the short term, such as buildings, machinery, and equipment.

Amortization Expense

The portion of the cost of a fixed asset deducted from revenue over its useful life for accounting purposes.

Operating Expenses

The costs associated with the day-to-day operations of a business, not including the cost of goods sold.

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be consumed or converted into cash within a year.