One Strength of Payback Period Is That It Fully Accounts

question 76

True/False

One strength of payback period is that it fully accounts for the time value of money.

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Definitions:

Sarbanes-Oxley

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent financial reporting by corporations, enhancing corporate governance and accountability.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving standards of financial accounting and reporting in the U.S.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Sarbanes-Oxley

A U.S. law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, also known as the Sarbanes-Oxley Act.