Match Each of the Following Characteristics with the Financial Statement

question 192

Multiple Choice

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once.
-Has three sections: operating, investing and financing

• A)Income statement
• B)Balance sheet
• C)Statement of owner's equity
• D)Statement of cash flows

---

Definitions:

Payback Period

The duration required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return generated by an investment per year over a specified period.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.