What Is the Basis for Quantitative Financial Evaluation

question 67

Multiple Choice

What is the basis for quantitative financial evaluation?

• A) Cash budget
• B) The Balanced Scorecard
• C) Capital Asset Pricing Model
• D) Financial ratios
• E) Present value analysis

---

Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its usage and wear and tear.

Direct Financing Leases

A type of lease where the lessor accounts for the asset as a receivable at an amount equal to the net investment in the lease.

Sales-Type Leases

Leases where the lessor recognizes immediate profit on the sale, in addition to interest revenue over the lease term, similar to a financial purchase.