The Payback Method Measures

question 88

Multiple Choice

The payback method measures

• A)how quickly investment dollars may be recovered.
• B)the cash flow from an investment.
• C)the economic life of an investment.
• D)the profitability of an investment.

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Definitions:

Closing Revenue

Closing Revenue typically refers to the total revenue recognized by a company at the end of a financial period.

Expense Accounts

Categories within financial accounting that track money spent or costs incurred by a company in its operational activities.

Accounting Period

A specific duration of time used for financial reporting purposes, typically a quarter or a year.

Revenue Balances

Revenue Balances relate to the residue amounts retained from earned revenues after covering all operational expenses and costs.