A Guideline Is

question 4

Multiple Choice

A guideline is

• A) Procedures that tell units when it would be nice if things were operated a certain way, but it is not a requirement to do so
• B) Guidelines to users and customers on what is appropriate and what is not appropriate to do with information technology resources
• C) A defined set of rules, accepted and adopted by several organizations
• D) A document that records a high-level principle or course of action that has been decided on

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Definitions:

Cash Inflows

This term describes the movement of money into a business or entity, typically from operations, investments, or financing activities.

Average Accounting Return (AAR)

A financial ratio that represents the average net income divided by the average book value of the investment over its life, typically used in capital budgeting.

Target AAR

Desired average annual return; a financial goal for the average rate of return over a specific period typically set by investors for their investment portfolio.

Profitability Index (PI)

The profitability index is a ratio that calculates the present value of future cash flows from an investment divided by the investment's initial cost, used to assess the desirability of a project.