Which of the Following Are Two Methods of Analyzing Capital

question 115

Multiple Choice

Which of the following are two methods of analyzing capital investment proposals that both ignore present value?

• A) Internal rate of return and average rate of return
• B) Net present value and average rate of return
• C) Internal rate of return and net present value
• D) Average rate of return and cash payback method

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Definitions:

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Dividends Received

Income received from owning shares in a company, typically paid out from the company's profits.

FVTPL

Fair Value Through Profit or Loss - a financial reporting method where assets and liabilities are measured at their current market value, with changes impacting the profit or loss directly.

Cash Consideration

Payment made in cash during transactions, such as acquisitions or buying goods and services.