For Purposes of Computing EVA,the Minimum Desired Rate or Return

question 4

Multiple Choice

For purposes of computing EVA,the minimum desired rate or return on an investment is known as

• A)ROI.
• B)cost of capital.
• C)residual income.
• D)profit margin.

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Definitions:

Adjusting Entries

Accounting records created at the close of a fiscal period to distribute revenues and expenses to the timeframe they genuinely transpired.

Reversed

In accounting, referring to the action of negating a previous transaction or entry to correct or adjust financial records.

Accrual Basis

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

Insurance Expense

The cost incurred by a business for its insurance policies, which is recorded as an expense on the income statement.