Which One of the Following Statements Is Correct

question 39

Multiple Choice

Which one of the following statements is correct?

• A)A longer payback period is preferred over a shorter payback period.
• B)The payback rule states that you should accept a project if the payback period is less than one year.
• C)The payback period ignores the time value of money.
• D)The payback rule is biased in favor of long-term projects.
• E)The payback period considers the timing and amount of all of a project's cash flows.

Identify the legal consequences for agents acting outside the scope of their authority.

Analyze the tort liability of principals for the acts of their agents, including negligence, respondeat superior, and unauthorized acts.

Understand the doctrines of ratification and adoption in the context of unauthorized contracts.

Explain the liability of agents for contracts entered into on behalf of non-existent or undisclosed principals.

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Definitions:

Overpayment Error

A financial mistake where more money is paid out than is owed or necessary, leading to a discrepancy in accounts.

Cash

A form of liquid asset that includes currency, coins, bank deposits, and other mediums of exchange that can be used immediately for transactions.

Trial Balance Totals

The aggregate amounts of all debits and credits in a company's trial balance, which should match to indicate that the accounting entries are balanced.

Journal Entry

A record in the accounting journal that details all the financial transactions of a business and their impact on its accounts.