The Investment Timing Decision Relates To

question 47

Multiple Choice

The investment timing decision relates to:

• A) how long the cash flows last once a project is implemented.
• B) the decision as to when a project should be started.
• C) how frequently the cash flows of a project occur.
• D) how frequently the interest on the debt incurred to finance a project is compounded.
• E) the decision to either finance a project over time or pay out the initial cost in cash.

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Definitions:

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services that remain unpaid.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to collect and thus considers a loss.

Journalize

The process of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.