Which of the Following Would NOT Be Affected by an Accounting

question 14

Multiple Choice

Which of the following would NOT be affected by an accounting policy change involving the capitalisation of some repairs expenses?

• A) Expenses
• B) Revenues
• C) Assets
• D) Net profit

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Definitions:

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, measuring the rate of return where the net present value of all cash flows from a particular project equals zero.

Present Value Factors

Mathematical factors used in calculating the present value of future cash flows, considering the time value of money.

Cash Outlay

The actual amount of cash spent by a business on expenses, such as purchasing assets, repaying debts, or covering operational costs.