Which of the Following Is an Example of an Independent

question 43

Multiple Choice

Which of the following is an example of an independent project?

• A)A manufacturing plant considering a major overhaul of an existing machine or replacing the existing machine with a new model.
• B)A hospital considering the purchase of a new MRI machine and a new cardiac monitoring system.
• C)A bank deciding between keeping a manual check sorting process or an automated sort process.
• D)A retailer deciding between an inventory management system offered by two different vendors.

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Definitions:

Total Assets

Refers to the sum of everything of value owned by a business, including cash, securities, receivables, inventories, and fixed assets.

Sources of Cash

Various origins from which a business or individual receives money, including operations, financing, and investing activities.

Accounts Payable

Money owed by a company to its creditors or suppliers for products or services that have been delivered but not yet paid for.

Fixed Assets

These are long-term tangible assets that a firm owns and uses in its operations to generate income, such as buildings, machinery, and equipment, which are not expected to be consumed or converted into cash within a year.