An Account Will Have a Debit Balance If

question 183

Multiple Choice

An account will have a debit balance if:

• A)the amount of the credits exceeds the amount of the debits.
• B)the amount of the debits exceeds the amount of the credits.
• C)the account has more debit entries than credit entries.
• D)it is a liability account.

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Definitions:

Discounted Payback Period

A capital budgeting method that calculates the amount of time needed to break even from an investment in present value terms, factoring in the time value of money.

Discount Rate

In discounted cash flow analysis, it's the rate of interest used for calculating the present day value of future financial inflows.

Cash Flows

The sum of all money transactions both incoming and outgoing in an establishment, affecting its ability to maintain liquid resources.

Discounted Payback Period

The time required to recoup the cost of an investment taking the time value of money into account, effectively the period it takes for an investment's cash flows to cover its initial cost.