Which of the Following Statements About EVA Is False

question 30

Multiple Choice

Which of the following statements about EVA is false?

• A)EVA can be improved by increasing earnings.
• B)EVA can be improved by reducing the capital used.
• C)EVA ranks projects with the same outlay,life and total earnings equally,even though their patterns of earnings may be different.
• D)EVA can be improved either by increasing earnings or by reducing the capital used.

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Definitions:

Record-Keeping Function

The process of maintaining a record of business transactions and financial activities for future reference.

Account System

Refers to a structured process of recording, analyzing, and managing financial transactions of a business or individual.

Backlog

The accumulation of work or orders that have been promised or planned but not yet completed or delivered.

Ledger Account

A ledger account is a record used to store and summarize the financial transactions pertaining to a particular aspect of a business, such as assets, liabilities, equity, revenues, or expenses.