Which of the following statements are true?
1. Pay-back period method considers all cash flows of a project
2. Pay-back period method concerns more with the recovery of cost than profitability
3. Net Present Value represents net addition to the wealth of shareholders
4. Accounting Rate of Return method incorporates risk as well as time value of money
Choose the correct option from those below:
A. 1 and 2
B. 1 and 4
C. 2 and 3
D. 2 and 4
Answer: Option C
Related Questions on Miscellaneous in Commerce
A. Expenditure for the business
B. Cost for the business
C. Gain for the business
D. None of the above
Which of these items would be accounted for as an expense?
A. Repayment of bank loan
B. Dividend to stock holders
C. The purchase of land
D. Payment of current period rent
Debit the receiver credit the giver rule for:
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
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