In Capital Budgeting,a Project Is Accepted Only If the Internal

question 49

Multiple Choice

In capital budgeting,a project is accepted only if the internal rate of return equals or:

• A)exceeds the net present value.
• B)is less than the required rate of return.
• C)exceeds the accrual accounting rate of return.
• D)exceeds the required rate of return.

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Definitions:

Corporations

Corporations are legal entities separate from their owners, created to conduct business, can own assets, incur liabilities, and are subject to taxation.

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Repeat Purchases

The act of customers buying the same product or service multiple times, indicating satisfaction and loyalty towards a brand.

Bad Debt Expense

An accounting term representing the amount of non-collectible accounts receivable that is considered a loss.