1. Which of the following is a characteristic of an annuity? a. Interest periods
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Question
1. Which of the following is a characteristic of an annuity? a. Interest periods of equal length. b. An equal dollar amount each interest period. c. An equal interest rate each interest period. All of the above. 2. A budget that is based on the actual activity of a period is known as a: a. continuous budget. b. flexible budget. c. master budget. d. static budget. 3. Janet Rollins is an investment center manager and is evaluated solely on the return on investment for her division. Which of the following will not result in an increase in return orn investment (ROD, assuming other factors remain the same? a. An increase in net operating income b. An increase in operating assets c. A reduction in expenses d. An increase in sales 4. Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of: a. Contribution margin. b. Segment margin. c. Return on investment. d. Residual income. 5. If a project has a profitability index that is greater than 1: a. it has a negative net present value b. its internal rate of return is equal to the discount rate. c. it is an acceptable project. d. it is an unacceptable project 6. Variances are always noted as favorable or unfavorable. What do these terms indicate? a. Whether the manager in a particular department is doing a good job. b. Whether actual results are more or less than standard or budgeted amounts. Whether a company is performing as well as its competitors. d.) All of the above.Explanation / Answer
Q-1 The correct alternative is D i.e. all of the above Since all other alternative has charactistic of annuity Q-2 The correct alterntive is C i.e. flexible budget The other alterntive are not based on actual activity of period Q-3 The correct alternative is B i.e. Increase in Operating assets The other alterntives do result in an increase in return on Investments Q-4 The correct alterntive is C i.e. Return on Investment The other alternative does help the manager to perceive the overall good of the company. As per Chegg Policy, we are supposed to answer maximum of 4 sub-parts of a question. Thank You
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