Which of the Following Is a Capital Budgeting Method Used

question 26

Multiple Choice

Which of the following is a capital budgeting method used to screen potential investments?

• A) return on assets
• B) acid test ratio
• C) accounting rate of return
• D) debt-to-equity ratio

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Definitions:

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Superego

In psychoanalytic theory, the part of the personality responsible for moral standards and self-criticism.

Reality Principle

The recognition, characterizing ego functioning, that we cannot always express or satisfy our id impulses.

Psychodynamic

A method in psychology that prioritizes the thorough investigation of the mental processes driving human behavior, emotions, and feelings, and their association with experiences from early life.