Which of the Following Capital Budgeting Techniques Has Been Criticized

question 89

Multiple Choice

Which of the following capital budgeting techniques has been criticized because it fails to consider investment profitability?

• A)payback method
• B)accounting rate of return
• C)net present value method
• D)internal rate of return

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Definitions:

Open Purchase Orders Report

A document listing all purchase orders that have been issued but not yet fulfilled or closed.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Vendor Reports

Reports generated in accounting software that provide details on transactions and outstanding balances with suppliers.

Reports Center

A feature in accounting or business software that consolidates various financial reports and analysis tools in one easily accessible location.