Capital Budgeting Techniques Such as Payback Method and Net Present

question 118

True/False

Capital budgeting techniques such as payback method and net present value are based upon Generally Accepted Accounting Principles (GAAP)and accrual accounting.

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Definitions:

Transactions

The actions or activities conducted by individuals or entities involving the exchange of goods, services, or financial assets.

Account

is a record within an accounting system that tracks the financial transactions of a specific asset, liability, equity, revenue, or expense.

Tabular Form

A method of presenting data in tables consisting of rows and columns, which helps in systematic organization and easy analysis of information.

Journals And Ledgers

Record-keeping books where financial transactions are first noted (journals) and then summarized and classified (ledgers).