The Minimum Required Rate of Return Is Often Referred to as the

question 37

Multiple Choice

The minimum required rate of return is often referred to as the

• A)Benchmark rate.
• B)Hurdle rate.
• C)Project rate.
• D)Activity rate.

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Definitions:

Vertical Analysis

A financial analysis method in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Financial Statement

A summary report that quantitatively describes the financial health of a company. This includes the balance sheet, income statement, and statement of cash flows.

Deferrals

Accounting method that involves postponing the recognition of certain revenues or expenses until a later accounting period to match them with the period they affect.

Accruals

Expenses and revenues that have been incurred or earned but not yet recorded in the accounts.