The internal rate of return method provides a rate of return that approximates:   Both the accounting rate or return and the unadjusted rate of return Neither the accounting rate of return nor the unadjusted rate of return The unadjusted rate of return The accounting rate of Return

Q: Distinguish the nominal rate of return from the real rate of return.

A:

Q: 1._____________ is the rate at which the net present value becomes zero. a. None of the options b.…

A: EXPLANATION:- Internal rate of return (IRR) is a way of measuring the value of return on the…

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: i. The net present value ii. The internal rate of return commend the decision to be made

A: Since in the given case the IRR is higher in machine 1 so it is to be selected.   Assumptions: We…

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: Differentiate between book value and market value. Explain why GAAPallows smoothing earnings…

A: The net value of a company's assets, as represented on its balance sheet, is roughly equal to the…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback 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: Which of the following methods does not consider the investment’s profitability? a. ARR b. Payback…

A:

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: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Explain the difference between profit and profitability.    Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

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: The static GAP focuses on monitoring net interest income in the long term.   Select one: True…

A: The Static GAP focuses on monitoring net interest income in the short term but it can be calculated…

Q: The gain or loss on the net monetary position in a hyperinflationary economy shall be included in:…

A: This question is answered according to IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: Describe the accounting when there is a right of return.

A: The right of return entitles a customer to a full or partial refund of the amount paid or a credit…

Q: 1. What is the difference between accounting anc economic profit?

A: Solution Note as per the Q&A guideline we are required to answer the first question only. Please…

Q: Identify and differentiate or define the types of

A: There are mainly two types of payback analysis : 1. Payback period 2. Discounted payback period

Q: difference between internal rate of return and net present value?

A: Difference between internal rate of return and net present value?

Q: The most accurate way to analyze the profitability of an investment is to compute the payback…

A: Payback period is the period for time taken of project to repay the initial investment. Payback…

Q: What is limitation of Payback period, Net Present Value (NPV) and Internal rate of return (IRR).…

A: i) Payback period: Payback period is the expected time period which is required to recover the cost…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: An investment should be rejected if the IRR is Group of answer choices - equal to the required rate…

A: Introduction: The internal rate of return (IRR) is a research and consulting metric used to assess…

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: Explain how earnings management from an informational perspective differs from the true income…

A: Earning management means to make the financial statements of the entity with the help of those…

Q: Explain the difference between the financial statement approach and the valuation approach. Which…

A: Financial statement approach: Under this approach, the company prepares an income statement, cash…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne

A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…

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: Which of the following would not result in an increase in both the current ratio and the acid test…

A: Current ratio is a financial ratio which helps to determine or analyse the liquidity in a company in…

Q: appropriate option (i) The rate of return method does not take care of timings of returns. (ii)…

A: Investment appraisal techniques are used to identify whether to invest or not in the project.   Rate…

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: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: Monetary items refers to those assets and liabilities whose value can be measured and expressed in…

Q: Which of the following ROIs uses the income computed under the accrual basis? A. Accounting rate…

A: The question is related to Capital Budgeting.

Q: What is the opposite of a vacancy rate? A O Internal rate of return. BO Occupancy rate. CO…

A: The vacancy rate is a percentage measure for all the available rental places that are vacant. The…

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: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

A:

Q: Unless otherwise stated, financial transactions assume the compounding frequency is greater than the…

A: Compounding frequency is times for which investment is compounded

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The basic accounting problem created by the monetary unit assumption when there is significant…

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The Financial Accounting Standards Board (FASB) is known as the is private, non-profit organization…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.