Use the Following Worksheet to Answer the Following Questions

question 170

Multiple Choice

Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close

• A) debit C. Finley, Capital $3,000, credit C. Finley, Drawing $3,000
• B) debit C. Finley, Capital $12,000, credit C. Finley, Drawing $12,000
• C) debit C. Finley, Drawing $3,000; credit C. Finley, Capital $3,000
• D) debit C. Finley, Drawing $12,000; credit C. Finley, Capital $12,000

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Definitions:

Equipment Replacement

The process of substituting old, worn-out, or obsolete equipment with newer, more efficient models or versions.

Discount Rate

A rate used to convert future cash flows into their present value, fundamental in the assessment of investment attractiveness.

IRR

Internal Rate of Return (IRR) is a financial measure used to evaluate the profitability of potential investments by calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Initial Cost

The initial outlay or expenditure associated with the purchase or acquisition of an asset, not including ongoing operating or maintenance costs.