The Time It Takes, in Years, for an Investment to Return

question 142

Multiple Choice

The time it takes, in years, for an investment to return the original amount of invested capital is referred to as

• A)the payback period.
• B)period of return.
• C)the investment return period.
• D)the internal rate of return.

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Definitions:

Negative NCI

A scenario where the non-controlling interest (minority interest) in a subsidiary has a debit balance, indicating that the subsidiary has incurred losses.

Accounting Standards

These are established rules and guidelines fiscal reporting must follow to ensure consistency, reliability, and comparability of financial statements.

Consolidated Financial Statements

Financial statements that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries, presenting them as a single economic entity.

Shareholder's Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.