Answer:
C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.
Explanation:
NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.
Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.
Thus, false statement is
Statement C
According to classical macroeconomic theory and monetary neutrality, changes in the money supply affect the GDP deflator
A measure of inflation in the prices of goods and services produced in the United States, including exports. The GDP deflator, though calculated differently, reflects the GDP price index very well. The GDP deflator is used by some companies to adjust payments for contracts.
GDP deflator = nominal GDP / real GDP * 100
Other price indexes such as CPI and GDP deflators are not formed in fixed baskets of goods and services. The basket changes each year depending on the investment and consumption patterns of the people of the year.
The GDP deflator is an essential indicator of the economy and helps to compare the year-to-year rise in price levels of goods and services. Unlike the Consumer Price Index (CPI), the GDP deflator allows comparisons across multiple time periods without using the base year as a constant or specific commodity basket.
Learn more about GDP deflator here: brainly.com/question/25084407
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Answer:
The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.
Explanation:
There are five steps for revenue recognition established by the Financial Accounting Standards Board (<em>FASB</em>) which are: <em>Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations </em>and<em>; Recognizing revenue.</em>
In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.
Answer:
The correct answer is could be over- utilized, but for temporarily
Explanation:
Economy resources are those resources or the factors which are used while producing the goods and the services. It could be divided or classified among human resource like management and labor and the non- human resources like technology, land and capital goods.
So, the economy resources could be over- utilized, but for temporarily through adding the shifts as well as running the equipment for longer but the machines could break down and the labor tires, therefore the over utilization cannot be sustained.