All of the Investment Appraisal Methods Below Use Cash Flows

question 2

Multiple Choice

All of the investment appraisal methods below use cash flows exclusively except:

• A)accounting rate of return.
• B)payback.
• C)internal rate of return.
• D)net present value.

---

Definitions:

Merchandise Inventory

The total value of a company's goods that are ready for sale but still in stock, representing a current asset on the balance sheet.

Accounts Payable

A liability in the form of amounts owed by a company to its creditors or suppliers for goods or services received.

Perpetual Inventory System

An inventory system that records changes in inventory levels after every transaction, ensuring continuous, real-time updates.

Accounts Payable

A liability account that records amounts owed by a company to suppliers or creditors for purchases made on credit.