Accounting for Business Stability

Front

An independent project should be accepted if it produces a net present value that is greater than or equal to zero.

Back

produces a net present value that is greater than or equal to zero.

Front

Expenditures for the Extensions or additions to buildings of non-current assets are treated as

Back

capital expenditure

Front

Which of the following statement regarding NPV is true? An investment should be accepted if, and only if, the NPV equals the initial investment. An investment should be accepted if, and only if, the NPV equals zero. An investment should be accepted if the NPV is positive and rejected if it is negative. An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted.

Back

An investment should be accepted if the NPV is positive and rejected if it is negative.

Front

Which of the following is an example of a market? garage sale, New York Stock Exchange, Grocery stores, Online auctions

Back

All of the above

Front

Expenditures relating to the acquisition of non current assets are treated as

Back

capital expenditure

Front

A capital market is ideal when: Financial institutions are sufficiently developed, Finance is available at a reasonable cost, Capital is most productively allocated.

Back

All of these

Front

What is the purpose of a cash budget?

Back

To plan for the future

Front

Expenditures for the maintenance of non-current assets are treated as

Back

revenue expenditure

Front

The amount of cash moving into and out of a business

Back

Cash Flow

Front

The two main headings of a Cash budget are

Back

Cash Receipts and Cash Payments