Examlex
Match each item with a statement below:
-Best used when work is predictable and cause-and-effect relationships are well known
Financial Basis
Refers to the underlying support or foundation for an economic claim or accounting method, often related to how financial statements are prepared.
Cash Basis
An accounting method in which revenues and expenses are recorded only when cash is received or paid out.
Zero NPV
A situation where the net present value of a project or investment equals zero, indicating that the expected cash flows exactly discount the initial investment, resulting in no net gain or loss.
Net Present Value
A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.
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