Quiz Ch 05 – T/F Relationship Between Internal Rate of Return and Project Risk
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: The internal rate of return for a project is influenced by its level of risk.
True or false: The internal rate of return for a project is influenced by its level of risk.
True or false: Nominal dollars are indicative of their purchasing power.
True or false: To achieve the same return when compounding, a semi-annual interest rate should be half of the annual rate.
The balance sheet reports accounts receivable at their net realizable value.
Recognition of revenue should follow the point of earning and not precede it.
In FOB destination shipments, the seller recognizes revenue when the goods depart from their shipping dock.
Step 3 of the revenue recognition model: seller sets the sale price as the expected amount from the customer.
The allowance method requires companies to use a consistent method for estimating the uncollectible-account expense.
Accounts receivable and trade receivables are the two primary types of receivables.
True or false: Present values decrease with an increase in the time to the cash flows.