Financial Management - Study Mode
[#161] An information uses by investors for expecting future earnings is all recorded in
Correct Answer
(B) annual report
Explanation
Solution: An information uses by investors for expecting future earnings is all recorded in annual report. An annual report is a comprehensive report on a company's activities throughout the preceding year.
[#162] In calculation of net cash flow, deferred tax payments are classified as
Correct Answer
(B) non-cash charges
Explanation
Solution: In calculation of net cash flow, deferred tax payments are classified as non-cash charges. A non-cash charge is a write-down or accounting expense that does not involve a cash payment.
[#163] Land, buildings, and factory fixed equipment are classified as
Correct Answer
(A) tangible asset
Explanation
Solution: Land, buildings, and factory fixed equipment are classified as tangible asset. A tangible asset is an asset that has a physical form.
[#164] Rate of return that an investment provides its investor is classified as
Correct Answer
(B) internal rate of return
Explanation
Solution: Rate of return that an investment provides its investor is classified as internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
[#165] Method of inventory recording gives lower cost of goods sold in income statement is classified as
Correct Answer
(D) First in first out
Explanation
Solution: Method of inventory recording gives lower cost of goods sold in income statement is classified as First in first out. First in, first out (FIFO) is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation.