1. Which of the following is a capital budgeting method used toscreen potential? investments? A. accounting rate...

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Question:

1. Which of the following is a capital budgeting method used toscreen potential? investments?

A. accounting rate of return

B. acid test ratio

C. return on assets

D. debt-to-equity ratio

2. Cash inflows include future cash revenue generated from aninvestment and any future residual value of the asset but excludeany future savings in ongoing cash operating costs resulting fromthe investment.

True

False

Related Book For answer-question

Equity Asset Valuation

ISBN: 978-0470571439

2nd Edition

Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen

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Posted Date: Dec 07, 2022 09:00 PM

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1. Which of the following is a capital budgeting method used toscreen potential? investments? A. accounting rate...

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Expert Answer:

ANSWER 1 B acid test ratio The acidtest ratio compares a companys quick assets cash and accounts rec... View the full answer

Equity Asset Valuation

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