Which of the Following Would Not Be Considered a Benefit

question 63

Multiple Choice

Which of the following would not be considered a benefit of conducting post-implementation audits of capital investment projects?

• A) Such audits ensure the realization of future after-tax cash flows.
• B) Such audits should reduce disincentive effects associated with using one type of model for capital investment analysis (e.g., NPV) and a different model for evaluation of subsequent financial performance (e.g., ROI).
• C) Knowledge that investments are subject to post-implementation audit can counter tendencies to inflate estimates of net cash benefits associated with proposed investment projects.
• D) Such audits can help an organization achieve greater levels of goal congruence in terms of the capital budgeting process.

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Definitions:

WAIS Scores

Scores derived from the Wechsler Adult Intelligence Scale, a standardized test designed to measure adult intelligence.

Percent

A mathematical term describing a number or ratio expressed as a fraction of 100.

Intelligence Test

A standardized assessment designed to measure human intelligence and cognitive abilities.

WAIS

The Wechsler Adult Intelligence Scale is a test created for assessing the intelligence levels of adults and older adolescents.