The Payback Method Has Several Advantages,among Them

question 108

Multiple Choice

The payback method has several advantages,among them:

• A) payback indicates the optimum or most economic solution to a capital budgeting problem.
• B) payback ignores cash inflows after the payback period.
• C) payback is easy to calculate.
• D) payback utilizes the time value of money.

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Definitions:

General Ledger

The General Ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Sales Journal

is a specialized accounting journal used to record all sales transactions of a business on credit.

Merchandise

Goods or products that are bought and sold by businesses.

Credit Sales

Sales made by a business where payment is delayed as per agreed-upon terms, typically recorded as accounts receivable.