Which of the Following Is NOT One of the Methods

question 53

Multiple Choice

Which of the following is NOT one of the methods that aid management in analyzing the expected results of capital budgeting decisions?

• A)accrual accounting rate of return
• B)net present value
• C)future-value cash flow
• D)payback method
• E)internal rate of return

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset as it is used.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the profit made during a specific period.

Operating Activities

Activities directly related to the operation of the business, including production, sales, and day-to-day business management.