When an Item of Property,plant and Equipment Is Sold,if the Carrying

question 80

True/False

When an item of property,plant and equipment is sold,if the carrying amount is higher than the sales price,there will be a loss on sale.

---

Definitions:

Payback Period

The duration required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return generated by an investment per year over a specified period.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.