Explain the similarities and differences between the holding period return and the internal rate of return
What will be an ideal response?
Answer: Both measures take into account total return from both income and capital gains. The holding period of return does not adjust returns for the length of time that an investment is held. The internal rate of return computes an average compound annual rate of return and is suitable for comparing investments held for different periods of time.
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When a lockbox is used, the financial institution records the deposit and then forwards customer transaction data to the client to update cash and accounts receivable records
a. True b. False Indicate whether the statement is true or false
Under international accounting standards, cash paid for income taxes (associated with income tax expense) can be shown on the statement of cash flows as an
a. operating activity only. b. operating activity, or may be split between operating, investing, and financing activities depending on the nature of the transaction giving rise to the tax payment. c. operating activity, or may be split between operating and investing activities depending on the transaction giving rise to the tax payment. d. operating activity, or may be split between investing and financing activities depending on the transaction giving rise to the payment.
A company has not received its payment from a customer even after sending the customer multiple reminders. In the final letter of a five-letter follow-up series to be sent to the customer, the company should:
A. give the customer the benefit of the doubt. B. state what legal action will be taken if the customer fails to pay. C. insult and blame the customer. D. demand that the customer make the payment immediately.
When researching foreign markets, the entrepreneur will usually want data such as population, GDP, per capita income, inflation rate, literacy rate, unemployment, and education levels.
Answer the following statement true (T) or false (F)