AICPA Exam CPA-Business Topic 1 Question 81 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 81
Topic #: 1

[All CPA-Business Questions]

When evaluating capital budgeting analysis techniques, the payback period emphasizes:

ALiquidity.

BProfitability.

CNet income.

DThe accounting period.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct.

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.

by Bobbye at Feb 07, 2024, 01:58 PM

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2 days ago

I disagree, I believe it emphasizes profitability.

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4 days ago

I think the payback period emphasizes liquidity.

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