Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A) If the payback period is less than the maximum acceptable payback period, accept the project.
• B) If the payback period is greater than the maximum acceptable payback period, reject the project.
• C) If the payback period is less than the maximum acceptable payback period, reject the project
• D) Two of the above.

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Definitions:

Cash Dividend

Cash distributed by a business to its owners from the earnings it has generated.

Net Amount

The remaining balance of a transaction after all deductions, including taxes and discounts, have been applied.

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other financial instruments.

Equity Securities

Financial instruments that represent ownership interests in corporations, such as stocks.