The Value of Checks That Have Been Written and Disbursed

question 86

Multiple Choice

The value of checks that have been written and disbursed but have not been deducted from the account on which they were written is the float.

• A)disbursement
• B)net
• C)collections
• D)balance
• E)deposit

Understand the concept and calculation of internal rate of return (IRR) and its impact on project decision-making.

Comprehend the definition and significance of the profitability index (PI) in assessing project viability.

Grasp the understanding of discounted payback period and its role in project evaluation.

Learn the concept of average accounting return (AAR) and its application in measuring project profitability.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific period.

Income Statement

A financial document that reports a company's revenues, expenses, and profits over a specific period, showing how the revenues translate into net income.

Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a company at a specific point in time.