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NEW QUESTION: 1
The following statements are about a health plan's capital budgeting process. Select the answer choice containing the correct statement.
A. Under the internal rate of return (IRR) method, if a project's IRR is less than a health plan's weighted average cost of capital (WACC), then the project's benefits should exceed its costs and the health plan should accept the project.
B. An underlying assumption of capital budgeting is that a health plan should keep its investing decisions separate from its financing decisions.
C. Under sensitivity analysis, a health plan ranks all capital project proposals according to expected rates of return and accepts only those proposals with the highest rankings.
D. A project that has a profitability index of 0.0 has an NPV of zero.
Answer: B

NEW QUESTION: 2
수익의 권리가 존재하는 경우, 기업은 다음과 같은 경우에만 판매 시점에 상품 판매로 인한 수익을 인식 할 수 있습니다.
A. 구매자가 상품을 재판매 합니다.
B. 판매자는 소유권의 위험과 보상을 유지합니다.
C. 미래 수익 금액을 확실하게 추정 할 수 있습니다.
D. 판매자는 반품이 중요하지 않다고 생각합니다.
Answer: C
Explanation:
One condition for condition of revenue from the sale of goods is the transfer of the significant risks and rewards of ownership. Retention of significant risk may occur when, for example, the buyer may rescind the purchase for a reason stipulated in the contract and the buy, is uncertain about the probability of return. However if the entity can reliably estimate future returns and recognize a liability for returns based on experience and other pertinent information, revenue may be recognized at the time of sale if the other conditions for revenue recognition are also met.


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