When Using the Cash Payback Technique, the Payback Period Is

question 70

Multiple Choice

When using the cash payback technique, the payback period is expressed in terms of

• A) a percent.
• B) dollars.
• C) years.
• D) months.

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Definitions:

Acid-Test Ratio

A liquidity metric that measures a company's ability to pay off its current liabilities without relying on the sale of inventory.

Balance Sheet

A statement detailing an organization's assets, liabilities, and owners' equity on a certain date.

Sales On Account

Transactions in which a customer purchases goods or services but payment is delayed, typically recorded as receivables on the seller's balance sheet.

Cost Of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.