Match the Term with Its Definition

question 99

Multiple Choice

Match the term with its definition.
-Agreements to repay cash amounts borrowed from banks or other lending sources within 12 months or less

• A)accrued expenses
• B)cash flow activities
• C)cost of goods sold
• D)gross profits
• E)long-term debt
• F)long-term note
• G)net profits
• H)operating profits
• I)profit margins
• J)profits before taxes (taxable income)
• K)short-term notes
• L)statement of cash flows

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Definitions:

Capital Budgeting Process

The procedure businesses follow to evaluate potential major projects or investments, through stages from proposal generation to project approval.

Favorably Biased

A tendency to present information in a manner that is more positive or beneficial than is justified by the facts.

Annual Depreciation Expense

The portion of the cost of a fixed asset that is expensed each year of its useful life, representing wear and tear, decay, or decrease in value.

Cash Inflows

Refers to the money received by a business from its operational, investment, and financing activities.