According to the net present value technique, a project is considered acceptable if:
A) the sum of all cash inflows and outflows is positive.
B) the difference between all discounted cash inflows and outflows exceeds zero.
C) it lowers costs below an acceptable hurdle rate.
D) its rate of return is greater than the firm's cost of capital.
E) it returns the initial investment faster than competing projects.
B
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ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2004. This other company paid the entire rent of $6,400 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year- end on December 31, 2004 would include:
A) A debit to Rent Earned for $2,400. B) A credit to Unearned Rent for $2,400. C) A debit to Cash for $6,400. D) A credit to Rent Earned for $2,400. E) A debit to Unearned Rent for $4,000.
Shipping terms of FOB destination mean that the:
a. purchaser is responsible for the shipping charges. b. shipping charges are debited to Freight-Out. c. items should be in the purchaser's inventory account at year-end if the items are in transit. d. Both (a) and (c) above.