Which of the Following Cycles Does Not Affect Cash in Bank

question 45

Multiple Choice

Which of the following cycles does not affect cash in bank?

• A)Capital acquisitions cycle
• B)Inventory and warehousing
• C)Payroll and personnel cycle
• D)Acquisitions and disbursements

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Definitions:

Discounted Payback

A capital budgeting method that calculates the time needed to recoup the initial investment in present value terms, considering the time value of money.

Crossover Point

The point at which two or more different financial indicators meet, often used in budgeting to identify when an investment will start to generate profit.

Mutually Exclusive Projects

Projects where the acceptance of one will automatically exclude the option of accepting the other.

IRR Rule

A guideline for evaluating potential investments wherein an investment is considered acceptable if its internal rate of return exceeds a predefined threshold.