Which of the Following Is an Advantage of the Payback

question 118

Multiple Choice

Which of the following is an advantage of the payback period?

• A)It is a simple technique.
• B)Accounting records are generally not based on cash flow, so the information for the calculation is readily available.
• C)Since depreciation is not included in the calculation, the result is not distorted.
• D)It provides a clear indicator of when the investment will be recovered.

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Definitions:

Homestead Exemption

A provision in the Bankruptcy Code that allows debtors to exclude a statutory amount of equity in the debtor’s place of residence and in property used as a burial ground when filing for bankruptcy.

Family Home

A residence where a family lives, often considered in legal contexts regarding its protection and rights against creditors or in cases of divorce.

Undue Influence

A legal term referring to a situation where a person takes advantage of their power over another person, leading to unfair agreements.

Unsound Mind

A state or condition in which an individual lacks the legal or mental capacity to manage personal affairs or understand the consequences of actions.