Mackay,Inc

question 65

Multiple Choice

Mackay,Inc.paid one of its creditors $678 on their balance due.The journal entry would require a:

• A)debit to Cash and a credit to Accounts Payable.
• B)debit to Cash and a credit to Accounts Receivable.
• C)credit to Cash and a debit to Accounts Receivable.
• D)debit to Accounts Payable and credit to Cash.

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Definitions:

Cash Flows

The sum of funds flowing in and out of a company, particularly as it influences liquidity.

Capital Budgeting Project

A process of evaluating and selecting long-term investments that are expected to generate revenues or reduce costs, aiding in a firm's strategic planning.

Weighted Average Cost of Capital (WACC)

WACC is a calculation of a firm's cost of capital, where each category of capital (debt, equity) is proportionately weighted.

Net Present Value (NPV)

Net Present Value is used to assess the value of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over the investment's lifetime.