Which of the Following Is a Capital Budgeting Method That

question 56

Multiple Choice

Which of the following is a capital budgeting method that is 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:

Production Characteristics

Attributes or features that define the process and output of manufacturing or production activities.

Efficient

The ability to achieve a desired result without wasted energy or resource.

Predictable

Capable of being foreseen or declared in advance, often through observation, experience, or scientific reasoning.

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, mainly from burning fossil fuels, leading to climate change.