Which of the Following Items Cannot Be Found on a Firm's

question 47

Multiple Choice

Which of the following items cannot be found on a firm's balance sheet under current liabilities?

• A) Accrued payroll taxes.
• B) Accounts payable.
• C) Short-term notes payable to the bank.
• D) Accrued wages.
• E) Cost of goods sold.

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Definitions:

IRR

Internal Rate of Return - a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations and asset disposal decisions.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.

Basic Overheads

The routine, essential expenses incurred in the operation of a business, such as rent, utilities, and salaries.