-18%

Managerial Accounting 4th Edition By Stacey Whitecotton – Test Bank

Original price was: $55.00.Current price is: $45.00.

{
“@context”: “https://schema.org/”,
“@type”: “Product”,
“name”: “Managerial Accounting 4th Edition By Stacey Whitecotton – Test Bank”,
“image”: “http://testbank.llc/wp-content/uploads/2023/02/Managerial-Accounting-4th-Edition-By-Stacey-Whitecotton-–-Test-Bank.jpg”,
“description”: “Searching for a Managerial Accounting 4th Edition By Stacey Whitecotton? You’ve come to the right place! All of the latest questions and answers.”,
“brand”: {
“@type”: “Brand”,
“name”: “Acounting”
},
“sku”: “TBA89418”,
“offers”: {
“@type”: “Offer”,
“url”: “https://testbank.llc/managerial-accounting-4th-edition-by-stacey-whitecotton-test-bank/”,
“priceCurrency”: “USD”,
“price”: “45”,
“priceValidUntil”: “2026-01-02”,
“availability”: “https://schema.org/InStock”,
“itemCondition”: “https://schema.org/NewCondition”
},
“aggregateRating”: {
“@type”: “AggregateRating”,
“ratingValue”: “4.8”,
“bestRating”: “5”,
“worstRating”: “1”,
“ratingCount”: “268”
}
}

Compare
Add to wishlist
Description

Managerial Accounting 4th Edition By Stacey Whitecotton – Test Bank

Chapter 11 Capital Budgeting

1) Preference decisions compare an investment with some minimum criteria.

Answer: FALSE
Explanation: Preference decisions require managers to choose among a set of alternative capital investment opportunities. Screening decisions compare an investment with some minimum criteria.
Difficulty: 1 Easy
Topic: Capital Investment Decisions
Learning Objective: 11-01 Calculate the accounting rate of return and describe its major weaknesses.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

2) Independent projects are unrelated to one another, so that investing in one project does not affect the choice about investing in another project.

Answer: TRUE
Explanation: An independent project is one that is unrelated to other projects, so that investing in it does not affect the choice about investing in another.
Difficulty: 1 Easy
Topic: Capital Investment Decisions
Learning Objective: 11-01 Calculate the accounting rate of return and describe its major weaknesses.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

3) The accounting rate of return is the only method that focuses on net income rather than cash flow.

Answer: TRUE
Explanation: The accounting rate of return is net income as a percentage of investment, while payback period, net present value, and internal rate of return focus on cash flows.
Difficulty: 1 Easy
Topic: Accounting Rate of Return
Learning Objective: 11-01 Calculate the accounting rate of return and describe its major weaknesses.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

4) The payback period is defined as the average net income divided by the initial investment.

Answer: FALSE
Explanation: Assuming there are equal projected cash flows each year, the payback period is the initial investment divided by the annual net cash flow.
Difficulty: 1 Easy
Topic: Payback Period
Learning Objective: 11-02 Calculate the payback period and describe its major weaknesses.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

5) The payback period method ignores the time value of money.

Answer: TRUE
Explanation: The payback period is calculated using undiscounted cash flows.
Difficulty: 1 Easy
Topic: Payback Period
Learning Objective: 11-02 Calculate the payback period and describe its major weaknesses.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

6) The net present value method compares a project’s future net income to the initial investment.

Answer: FALSE
Explanation: The net present value method compares the present value of a project’s future cash flows to the initial investment.
Difficulty: 1 Easy
Topic: Net Present Value
Learning Objective: 11-03 Calculate net present value and describe why it is superior to the other capital budgeting techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

7) The internal rate of return is the rate of return that yields a zero net present value.

Answer: TRUE
Explanation: Internal rate of return is calculated as the rate of return that yields a zero net present value.
Difficulty: 1 Easy
Topic: Internal Rate of Return
Learning Objective: 11-04 Predict the internal rate of return and describe its relationship to net present value.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

8) The internal rate of return method uses cash flows rather than net income.

Answer: TRUE
Explanation: The internal rate of return is calculated using cash flows, not net income.
Difficulty: 1 Easy
Topic: Internal Rate of Return
Learning Objective: 11-04 Predict the internal rate of return and describe its relationship to net present value.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

9) The profitability index is calculated as the present value of future cash flows divided by the initial investment.

Answer: TRUE
Explanation: The formula for the profitability index is the present value of future cash flows divided by the initial investment.
Difficulty: 1 Easy
Topic: Profitability Index
Learning Objective: 11-04 Predict the internal rate of return and describe its relationship to net present value.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

10) Sensitivity analysis helps determine whether changing the underlying assumptions would affect the decision.

Answer: TRUE
Explanation: The purpose of sensitivity analysis is to determine whether changing the underlying assumptions would affect the decision.
Difficulty: 1 Easy
Topic: Evaluating Mutually Exclusive Projects
Learning Objective: 11-05 Use the net present value method to analyze mutually exclusive capital investments.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

How You Will Get Your Product?

After making the purchase, you will get the activation license Instantly


Step 1: Instant Access to Your Purchase

  1.      The official product download link
  2.      We will provide you the original key to activate the product without any issues.

Step 2: License Key Format

  1. License Key format :
    1. License Number: XXXX-XXXX-XXXX-XXX
    2. Product number: XXX-XXX

Certified QuickBooks ProAdvisor services!

We offer Intuit ProAdvisor licenses registered under our company. With our QuickBooks ProAdvisor licenses, you'll receive the full benefits of an authentic Intuit license. Your software and company data/files remain secure and stored on your computer at your designated work location. As it's a desktop version, not online, no remote access to your data/files is possible.