The Finding from Surveys of the Methods of Business Investments

question 12

Multiple Choice

The finding from surveys of the methods of business investments that is true is:

• A) The payback method is hardly used in practice.
• B) There is a tendency for larger businesses to use the discounting methods.
• C) Businesses generally only use one method to assess each investment decision.
• D) All of the statements are true.

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Definitions:

Inventory Balance

The total value of all the goods and materials held by a company at a specific point in time.

Cash Payments

Refers to transactions where money is physically paid out or deducted from an account to settle obligations or acquire goods and services.

Operating Cash Flow

Cash generated from a company's regular business operations, excluding investment and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered but not yet paid for.