Which of the Following Statement Is True

question 48

Multiple Choice

Which of the following statement is true?

• A)One must know the discount rate to compute the NPV of a project but one can compute the IRR without referring to the discount rate.
• B)One must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rate.
• C)Payback accounts for time value of money.
• D)There will always be one IRR regardless of cash flows.
• E)Return on equity is the ratio of total assets to total net income.

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Definitions:

Accrued Salaries

These are wages that have been earned by employees but have not yet been paid by the employer.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

Services Provided

Activities done for others as an economic product that are intangible, not stored, and produced at the time of consumption.

Unearned Ticket Revenue

Money received from ticket sales before the event has occurred, classified as a liability until the service is performed.