Which of the Statements Below Is FALSE

question 61

Multiple Choice

Which of the statements below is FALSE?

• A)To account for the time value of money with the Payback Period Model,the future cash flow needs to be restated in current dollars.
• B)The Discounted Payback Period method is the time it takes to recover the initial investment in future dollars.
• C)When we discount a future cash flow with our standard time-value-of-money concepts,we inherently assume that the entire cash flow was received at the end of the year.
• D)The Discounted Payback Period method does not correct for the cash flow after the recovery of the initial outflow.

---

Definitions:

Insurance Expense

The amount a company spends on insurance policies to cover various risks, recorded as an expense in the accounting period in which it is incurred.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credit

In accounting, it refers to the entry that decreases assets or increases liabilities and equity on the company's balance sheet.

Collections

The act of seeking out the settlement of debts from businesses or individuals.