The Major Difficulty of the Cash Payback Method Is

question 80

Multiple Choice

The major difficulty of the cash payback method is

• A)it includes salvage values at the end of a project.
• B)it ignores net income in its calculation.
• C)it ignores the overall cash flow of the project.
• D)it ignores the overall profitability of the project.

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Definitions:

Merchandise

Goods that are bought and sold by a business in the regular course of its operation.

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.

End-of-period Spreadsheet

A tool used in accounting to gather all the financial data and adjustments needed to prepare financial statements at the end of an accounting period.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.