According to the Economic Value Added (EVA)method,a Firm Should Be

question 20

True/False

According to the economic value added (EVA)method,a firm should be considered attractive only if it can generate sufficient income to pay for its existing capital.

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Definitions:

Investing Activities

Financial actions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement.

Sale of Land

A transaction involving the transfer of ownership of land from one party to another.

Receipts

Written acknowledgments of having received something, typically used for transactions and proof of payment.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.