Which of the Following Statements Is Not True

question 49

Multiple Choice

Which of the following statements is not true:

• A)Accounts receivable are held by a seller.
• B)Accounts receivable arise from credit sales.
• C)Accounts receivable are increased by customer payments.
• D)Accounts receivable are classified as assets.
• E)Accounts receivable are increased by billings to customers.

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Definitions:

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Payback

The period of time required for the return on an investment to "repay" the original investment cost.

Discounted Payback

A capital budgeting method that calculates the time required to recoup an investment based on discounted cash flows.

Stockholder Wealth

The total value of all financial assets owned by the shareholders of a company, often measured by the market value of the shares held.