Which of the Following Events Would Not Be Recorded by an Accountant

question 56

Multiple Choice

Which of the following events would not be recorded by an accountant?

• A) The owner paid his son's car registration from the business bank account.
• B) Credit purchase.
• C) Placed an order with a supplier.
• D) Depreciation on equipment calculated at the end of the firm's financial year.

---

Definitions:

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Initial Investment

Initial investment refers to the amount of money initially laid out for an investment project or venture.

Profitability Index

The present value of a project’s cash inflows divided by the investment required.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.