Which of the Following Is NOT True When Developing a Time

question 148

Multiple Choice

Which of the following is NOT true when developing a time line?

• A) Cash inflows are designated with a positive number.
• B) Cash outflows are designated with a positive number.
• C) The cost is known as the interest rate.
• D) The time line shows the magnitude of cash flows at different points in time.

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Definitions:

Voucher

A document or record acting as evidence for a transaction, or as an authorization for payment.

Net Method

An accounting technique where discounts for early payment are calculated and recorded as lower sales prices at the time of sale, in anticipation that discounts will be taken.

Periodic Method

An accounting method that records inventory purchases and sales periodically, typically at the end of an accounting period, instead of continuously.

Journal Entries

The method by which transactions are recorded in the general ledger in the form of debits and credits according to accounting rules.