For a Retail Business,a Delivery of Inventory,from a Vendor (With

question 11

Multiple Choice

For a retail business,a delivery of inventory,from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle?

• A)purchases journal;expenditure cycle
• B)general journal;expenditure cycle
• C)general ledger;expenditure cycle
• D)cash disbursements journal;production cycle

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Definitions:

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a proposed project through its net present value.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Discount Rate

In the realm of discounted cash flow analysis, this is the interest rate used for estimating the present value of future financial inflows.

Anticipated Annual Incremental

Expected yearly increases in revenue or benefits as a result of a particular action or investment, not considering future inflation or changes in currency value.