Cash Flows Used in Net Present Value and Internal Rate

question 151

Multiple Choice

Cash flows used in net present value and internal rate of return analyses ignore ________.

• A) future increased sales
• B) future cost savings
• C) depreciation expense
• D) residual value

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Definitions:

Ledger

A comprehensive collection of a company’s final financial accounts, including assets, liabilities, equity, revenue, and expenses.

Journal

A detailed record where all financial transactions of a business are initially recorded, listed in chronological order.

Chart of Accounts

A systematic list of accounts that a company uses for the organization of its financial transactions and to prepare financial statements.

Salaries Expense

The cost incurred by a company for the salaries of its employees.