Which of the Following Accounts Is Associated with the Current

question 35

Multiple Choice

Which of the following accounts is associated with the current financial resources measurement focus but not with the economic resources measurement focus?

• A)assets
• B)expenditures
• C)revenues
• D)liabilities

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Definitions:

Accounting Rate of Return

The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategy and financial performance of an organization.

Payback Period

The payback period is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover its initial cost, helping assess the risk and efficiency of an investment.