Accounting Multiple Choice Question – 26 July 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following four methods are used to evaluate projects.

  • accounting rate of return
  • internal rate of return
  • net present value
  • payback

Which methods are based on using cash flows?

Select ONE answer:

  1. 1,2,3 and 4
  2. 1,3 and 4 only
  3. 2,3 and 4 only
  4. 2 and 3 only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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