Which of the Following Is Not a Common Method of Capital

question 39

Multiple Choice

Which of the following is not a common method of capital budgeting?

• A) Gross profit method
• B) Payback method
• C) Discounted cash flow method
• D) Annual rate of return method

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Invoice

A document issued by a seller to a buyer that lists the products or services sold, their quantities, and the prices charged.

Supplier

A supplier is an entity or person that provides products or services to another business, often a key component in the supply chain of manufacturing and retail operations.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs of goods sold, such as rent, salaries, and utilities.