Match the Term with Its Definition

question 67

Multiple Choice

Match the term with its definition.
-Capital budgeting techniques that compare the present value of future cash flow with the cost of the initial investment

• 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:

Ending Equity

The value of an owner’s interest in a company at the end of an accounting period, determined by subtracting liabilities from assets.

Payroll Accrual

An accounting method that records payroll expenses incurred but not yet paid out to employees, ensuring expenses are recognized in the period they are incurred.

Accounting Period

The span of time covered by financial statements, often a quarter or year, reflecting the company's financial performance and position.

Accrual Entry

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.