Making a Payment on an Account Would Be Journalized with a Debit

question 137

True/False

Making a payment on an account would be journalized with a debit to Accounts Payable and credit to Cash.

---

Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Cost of Capital

The essential return rate an enterprise must attain on projects to uphold its market value and pull in investment.

Present Values

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Net Present Value

A financial metric that calculates the value of projected cash flows, discounted back to the present value.