Which of the Following Types of Standards Can Be Achieved

question 56

Multiple Choice

Which of the following types of standards can be achieved only under perfect conditions?

• A)Easily attainable standard
• B)Ideal standard
• C)Currently attainable standard
• D)Tight but attainable standard

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Definitions:

Discount Rate

The rate of interest deployed in DCF assessments to establish the present worth of forthcoming cash flows.

Pretax Return

The income a company generates before any taxes are subtracted.

Working Capital

The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.

Salvage Value

The projected sales value of an asset at the termination of its effective life.