Which of the Following Is Not an Assumption of the Models

question 9

Multiple Choice

Which of the following is not an assumption of the models that analyse cash flows for capital investment decisions?

• A) It is assumed that all cash flows occur at the same time each year.
• B) It is assumed that all cash flows occur at the beginning of the year.
• C) Cash flows are assumed to be in the same period as accrual accounting revenue and expenses are recognised.
• D) Tax implications of cash flows should be included.

---

Definitions:

Right to Privacy

The right of individuals to keep their personal matters and information private and free from unauthorized intrusion.

Contraceptives

Methods or devices used to prevent pregnancy.

Rational-basis Test

A standard of review used by courts to evaluate the constitutionality of a statute, requiring that the law be rationally related to a legitimate government interest.

Supremacy Clause

Article VI, Paragraph 2, of the U.S. Constitution, which states that the Constitution and all laws and treaties of the United States constitute the supreme law of the land. Thus, any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void.