Indicate Beside Each of the Following Accounts Whether the Account

question 126

Essay

Indicate beside each of the following accounts whether the account is a temporary or permanent account.(a) Cash(b) Prepaid insurance(c) Unearned Revenue(d) Accounts receivable(e) Insurance expense(f) Smith, capital(g) Smith, withdrawals(h) Rent expense(i) Revenue(j) Supplies(k) Supplies expense(l) Depreciation expense, building(m) Accumulated depreciation, building

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Definitions:

Net Present Value Method

A method in capital budgeting that evaluates an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The estimated current value of a forthcoming sum of money or series of cash inflows, considering a certain rate of return.

Method

A systematic way or approach used to accomplish a task or solve a problem, often applied in research, analysis, or strategic planning.

Capital Rationing

A strategy or situation where a company limits its new investments or projects due to constraints on available financial resources.