If Capital Has Been Credited, It Is Likely That

question 105

Multiple Choice

If Capital has been credited, it is likely that:

• A) services were provided to a cash customer.
• B) services were provided to a charge customer.
• C) the owner made an investment.
• D) the owner withdrew cash.

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Definitions:

Qualitative Characteristic

A feature or attribute of accounting information, such as relevance or reliability, which enhances its usefulness for decision-making.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by discounting all cash flows to their present value using a specified discount rate.

Future Cash Inflows

Expected receipts of cash in the future from various sources, including operations, investments, and financing activities.

Rate of Return

The profit or loss of an investment over a particular period, represented as a proportion of the initial investment amount.