Comparison of the Actual Results for a Project to the Costs

question 18

Multiple Choice

Comparison of the actual results for a project to the costs and benefits expected at the time the project was selected is referred to as

• A)the audit trail.
• B)management control.
• C)a post-investment audit.
• D)a cost-benefit analysis.
• E)capital budgeting.

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Definitions:

Long-Term Investment

Financial investments that are not expected to be liquidated within a year and are held for growth, income, or speculative purposes.

Investor's Income

The income earned by an investor from their investment portfolio, including dividends, interest, and capital gains.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee but does not have full control.

Significant Influence

A situation in which an investor has the power to participate in the financial and operating policy decisions of an investee, but not control over them.