Question

Question 1 Investment methods, such as net present value and internal rate of return, Not yet answered Marked out of 2.00 F Flag question Select one: O A. consider discounted cash flows O B. focus on the payback period O C. use simple interest calculations O D. use net income amounts rather than cash flows Question 2 For a merchandising company, the final step in the process of creating the master budget is the preparation of the Not yet answered Marked out of 2.00 P Flag question Select one: O A. operating budget O B. cash budget C. budgeted balance sheet O D. budgeted statement of retained earnings

Answer 1

1	NPV and IRR calculation is based on Discounted cash flows
	NPV =Present value of Discounted cash flows - Inititial Investments
	So Option A is answer
2	The Final Step in the Master Budget creation process is preparation of Budgeted Balance Sheet which can only be
	made after all the other Budgets are completed.
	So Option C is answer
3	When the Actual quantity of materials used is more than the Standard quantity of materials allowed then the
	Direct material efficeinecy/quantity variance is unfavourable
	So Option C is answer