Match the Term with Its Definition

question 81

Multiple Choice

Match the term with its definition.
-The rate of return a firm expects to earn on a project

• A)accounting return on investment technique
• B)capital budgeting analysis
• C)discounted cash flow (DCF) techniques
• D)internal rate of return (IRR)
• E)net present value (NPV)
• F)payback period technique
• G)pledged accounts receivable

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Definitions:

Total Assets

The sum of all assets owned by an individual or organization, including both current and non-current assets.

Owners' Initial Investment

The initial amount of money or resources contributed by the owners to start a business.

Profits

The profit made when the money earned from business operations is more than the expenses, costs, and taxes needed to maintain the operations.

Open Book Management

Practice of sharing financial information with employees and teaching them how to understand and use financial statements.