Which of the Following Is a Capital Budgeting Method Used

question 26

Multiple Choice

Which of the following is a capital budgeting method used to screen potential investments?

• A) return on assets
• B) acid test ratio
• C) accounting rate of return
• D) debt-to-equity ratio

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Definitions:

Overhead Projector

An optical device used to project images onto a screen, typically for presentations or educational purposes.

Transparencies

refer to clear sheets used for projecting images onto a screen, typically via an overhead projector, often used in educational settings.

Means-End Analysis

A problem-solving method that involves breaking down the problem into smaller problems, solving them, and integrating their solutions to reach the end goal.

Availability Heuristic

A mental shortcut used to estimate the likelihood of events based on their ease of retrieval from memory, which can sometimes lead to biases.