The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?
Amutual consent
Bmutual project
Cpresent value consent
Dmutually exclusive
Study & Learn
Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.
Correct answer
D. mutually exclusive
Explanation
mutually exclusive is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. net present value of method
Explanation
net present value of method is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Corporate bonds
Explanation
Corporate bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. price to cash flow ratio
Explanation
price to cash flow ratio is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. treasury inflation protection securities
Explanation
treasury inflation protection securities is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Decrease
Explanation
When inventory is purchased for cash, the cash is converted into inventories and there is no effect on net current assets. The current assets remain the same as before the purchase of inventory the current ratio will not be changed. Quick ratio, however, will be reduced if the cash is converted into inventories because while computing quick ratio inventories are not added but cash is included in quick assets. (Quick assets / current liab.) Quick assets = current assets-inventories.
Correct answer
A. An increase in the cost of debt
Explanation
An increase in the cost of debt is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. thin markets
Explanation
thin markets is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Call protection
Explanation
Call protection is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Corporation
Explanation
Corporation is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.