Which of the Following Statements Is FALSE

question 80

Multiple Choice

Which of the following statements is FALSE?

• A)In general,the IRR rule works for a stand-alone project if all of the project's positive cash flows precede its negative cash flows.
• B)There is no easy fix for the IRR rule when there are multiple IRRs.
• C)The payback rule is primarily used because of its simplicity.
• D)No investment rule that ignores the set of alternative investment opportunities can be optimal.

---

Definitions:

Allowance Method

A method used in accounting to estimate and account for bad debts, representing the amount of accounts receivable that may not be collected.

Allowance for Doubtful Accounts

A contra asset account that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.

Accounts Receivable

Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.