If a project's internal rate of return is greater than the project's required return, then the project's
profitability index will be greater than one.
Indicate whether the statement is true or false
TRUE
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Answer the following statements true (T) or false (F)
1) Before signing a check, the controller or the treasurer should examine the purchase order, the invoice, and the receiving report to determine that the company received the goods and that the company is paying only for the goods received. 2) A receiving report should be matched with the supplier invoice before a payment to the supplier is approved. 3) For good internal control over cash payments, the company officer approving a payment voucher should be the same as the person who ordered the goods. This ensures that the correct amount of cash is paid. 4) For good internal control, the purchasing agent should neither receive the goods nor approve the payment. 5) For good controls over cash payments, the person who orders goods from a supplier should always be different from the person who approves the payment.
The Lei Fund had a risk-adjusted rate of return (RAROR) last year of -3.0%. This means
A) the fund underperformed the overall market. B) the fund outperformed the overall market. C) the overall market performed poorly. D) the fund had a negative beta.
Point of sale systems permit customers to charge items to a charge account at a bank
Indicate whether the statement is true or false
Ivy signs a check payable to Jon and gives it to him. Jon indorses the back, and transfers the check to Ked. To negotiate the check to Luis, Ked must
A. write "Ked" on the back. B. write "pay to the order of Luis [signed] Ked" on the back. C. deliver the check to Luis. D. obtain Luis's signature on the back.