Vendor Invoices from the Expenditure Cycle Flow into the General

question 25

Multiple Choice

Vendor invoices from the expenditure cycle flow into the general ledger and financial reporting cycle through:

• A)the purchases journal directly
• B)the purchases journal and then through the accounts payable subsidiary ledger
• C)the cash disbursements journal directly
• D)the accounts payable subsidiary ledger and then through the cash disbursements journal

---

Definitions:

Total NPV

The sum of the net present values of a series of cash flows, which can indicate the overall net benefit of a series of potential investments or projects.

Maximize

To increase a particular outcome or variable to its highest possible value within a given set of constraints.

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.