Select the Incorrect Statement Regarding Postaudits of Capital Investment Decisions

question 147

Multiple Choice

Select the incorrect statement regarding postaudits of capital investment decisions.

• A) A postaudit should be conducted at the end of the project.
• B) The postaudit helps management determine whether a project that had been accepted should have been rejected.
• C) A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money.
• D) The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions.

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Definitions:

Amnesia

A loss of memory due to brain injury, disease, or psychological trauma.

Hippocampus

A major component of the brain in humans and other vertebrates, associated with memory formation, organization, and storage.

Amygdala

A region of the brain that is critical in processing emotions, fear responses, and memory.

Peripheral Nervous System

The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system (CNS) to limbs and organs.