Which Capital Budgeting Method Uses Accrual Accounting,rather Than Net Cash

question 130

Multiple Choice

Which capital budgeting method uses accrual accounting,rather than net cash inflows,as a basis for calculations?

• A) payback
• B) accounting rate of return
• C) net present value
• D) internal rate of return

---

Definitions:

Reward Programs

Loyalty schemes designed by businesses to incentivize and retain customers by offering them benefits for repeated purchases or engagements.

Sales Promotion

A marketing strategy involving the use of short-term incentives to encourage the purchase or sale of a product or service.

A Sample

A portion or subset of a larger group or dataset, selected for analysis or observation of the whole.

Repeat Purchases

Repeat purchases refer to the action of buying the same product or service multiple times by a consumer, indicating customer loyalty and satisfaction.