Which of the Following Is Considered to Be an Accrued

question 117

Multiple Choice

Which of the following is considered to be an accrued expense?

• A) A computer technician has installed the latest software updates and was paid on the same day.
• B) A computer technician has been paid in advance to install software updates as they become available.
• C) A computer technician has just signed an agreement with you regarding pricing for future work.
• D) A computer technician has installed the latest software updates, but you have not received their invoice for payment.

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Definitions:

Required Return

The expected return that investors seek from an investment, considering its risk level and the opportunity cost of forgoing other investments.

Profitability Index

A calculation that determines the relative profitability of an investment, expressed as the ratio of the present value of future cash flows over the initial investment cost.

Internal Rate Of Return

In financial evaluation, it's a measure used to assess the profitability of forthcoming investments, identified by the yield rate that renders the net present value of the project's cash flows neutral.

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve by investing in a particular asset.