Select the Incorrect Statement Regarding Postaudits of Capital Investment Decisions

question 147

Multiple Choice

Select the incorrect statement regarding postaudits of capital investment decisions.

• A) A postaudit should be conducted at the end of the project.
• B) The postaudit helps management determine whether a project that had been accepted should have been rejected.
• C) A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money.
• D) The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions.

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Definitions:

Lack Of Dependability

The unreliability or inconsistency of someone or something in fulfilling obligations or producing consistent results.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with both private sector freedom and governmental regulation.

Incorporated

A legal status indicating that a company has been officially formed into a corporation, providing its owners limited liability protections.