Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use

Q: Which of the following method is not based on concept of time value of money? A. Discounted payback…

A: Time value of money is based on the concept, that money you have today worth more than it in the…

Q: In a realization account profit arises if: Assets are realized at less than the book value and/or…

A: Realization means the amount that has been received from sale of the assets of the company due to…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: Match each of the following terms with the best definition. A. Theory of constraints B. Sunk cost…

A: Given the following question: Theory of constraints Sunk cost Differential analysis Opportunity…

Q: _____isthe difference between the gross present value of the benefits of that action and the amount…

A: The difference between the present value of benefits and amount of investment is the key evaluation…

Q: For any investment, the costs and benefits should be measured in terms of cash flows rather than…

A: The flow of money in and out of any company, venture, or financial item is referred to as the cash…

Q: Calculate the accounting rate of return of the new sign. Accounting rate of return %

A: Accounting Rate of Return The accounting rate of return (ARR) formula is helpful in determining the…

Q: The excess present value method is anchored on the theory that the future returns, expressed in…

A: The excess present value method is also known as a net present value which required the present…

Q: Which of the following does not assign a value to a business opportunity using time-value…

A: Answer : D Payback period method

Q: Which of the following facilitates the comparison of financial performance with one period to…

A: Financial performance can be compared if the business uses same policies and methods in all the…

Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

Q: Match each sentence to the correct concept. a)  The amount an investment is worth after one or more…

A: The answers along with explanation are provided in the next step.

Q: Leftover hypothesis of profit is relevant just when:    a. The expense of held income lower than…

A: The leftover hypothesis of Profit means remaining profit i.e. profit left over after paying all the…

Q: excess earnings method, capitalized earnings approach, and discounted future earnings approach which…

A: ADJUSTED NET ASSETS METHODThe difference between the fair market value of the business assets and…

Q: 1. Which of the following should be considered a current value measure? * a. Replacement cost and…

A: 1. Which of the following should be considered a current value measure? * c. Replacement cost, exit…

Q: Explain what is meant by Accounting Rate of Return (ARR) and Net Present Value (NPV) in the context…

A: Solution:- Accounting Rate of Return (ARR):- It measures the expected profitability from any capital…

Q: Which of the following should not be included as an application of the rate of return concept? rate…

A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…

Q: What are some of the accounting applications that incorporate the time value of money into…

A:

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: Which of the following is not a pervasive expense recognition principle? a. immediate recognition…

A: Option C - Cash Payment is not a pervasive expense recognition principle.

Q: Each of the following are true of relevant information except O different alternatives can be…

A: Accounting is the process of recording, classifying, summarising and reporting accounting…

Q: The internal rate of return method provides a rate of return that approximates:   Both the…

A: The internal rate of return shows the estimated rate of growth in a year from the particular…

Q: Match each of the terms below with its definition. 1. Sunk cost a. Additional costs incurred from a…

A: Costs: It may be classifed as sunk costs, opportunity costs etc. some kinds of costs are relevant…

Q: financial assets generate net income to the economy, while real assets define the allocation of…

A: Financial assets are assets are liquid assets that can easily and quickly be converted into cash…

Q: assumes that money holds a constant purchasing power Present value accounting .a O Fair market value…

A: Purchasing power of a currency can be defined as the amount of goods and services that can be…

Q: The trend in financial management is to treat expenditure on human resource as ____ a. as expense b.…

A: The answer and explanation can be seen below:

Q: __________ considers the impact of changing one or more inputs or assumptions on the resulting…

A: Capital budgeting is one of the important process of financial management. By this procedure,…

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…

Q: comparison of financial performance with one period to another period is possible this is as a)…

A: Going concern assumption says that business will continue for unlimited number of year. Historical…

Q: A realized return is the rate of return actually earned on an investment. Group of answer choices…

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: Which of the following statements about accounting income and economic income is (are) correct? I.…

A: Accounting profits includes explicit costs only, whereas economic profits includes both explicit and…

Q: Explain the idea of mental accounting. Group of answer choices   Mental accounting refers to the way…

A: solution : Explain the idea of mental accounting. Correct answer is Mental accounting is the notion…

Q: Explain the following and describe its impact on the financial statements: a. cost principle b.…

A: Financial statements are written records that present the business activities and the financial…

Q: The third step for making a capital investment decision is to establish baseline criteria for…

A: In order to establish baseline criteria for alternatives for making capital budgeting decisions, the…

Q: ___________ is the possible loss of revenue resulting mainly from a decline in the revenue base.…

A: There are various risks

Q: Which of the following methods does not adjust for the time value of money: A internal rate of…

A: Capital Budgeting is a financial analysis technique which is used to evaluate the profitability of…

Q: Critically explain each one of the following financial terms: Asymmetric information Moral hazard…

A: Answer:- 1 Asymmetric information:- When one side in a transaction has more information as compare…

Q: Which of the following scenarios can increase the return on assets? a. Increase the current and…

A: Return on Assets = Net Profits / Total Assets

Q: Which method does not consider the time value of money? Choose the correct. A. Net present value…

A: Net Present Value or NPV is a technique which determines the net present value of the project and it…

Q: When making judgements lower profits and asset values are estimated rather than higher values. Which…

A: The underlying principles, assumptions, and circumstances that establish the parameters and…

Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…

A: SOLUTION- DRAWINGS-  IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.