The Problem of Multiple IRRs Can Occur When

question 68

Multiple Choice

The problem of multiple IRRs can occur when:

• A)there is only one sign change in the cash flows.
• B)the first cash flow is always positive.
• C)the cash flows decline over the life of the project.
• D)there is more than one sign change in the cash flows.
• E)None of the above.

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Definitions:

Closing Journal Entries

Entries made in the accounting records at the end of an accounting period to transfer balances from temporary to permanent accounts.

Salary Expense

An expense account that records the total amount of salary payments made to employees over a period of time.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company.

Closing Entries

Entries recorded at the close of an accounting period to move balances from temporary to permanent accounts.