Which of the following is a disadvantage of the cash payback technique? | Homework.Study.com (2024)

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• What are the disadvantages of using the payback method as a capital budgeting technique? What are the advantages? Why is it used so frequently?
• Why is the payback method inferior to the discounted cash flow methods? When is the payback method helpful?
• (a) Describe some of the advantages and disadvantages of using the cash-basis method of accounting. (b) Give some examples.
• Discuss the Advantages and Disadvantages of the Cash Basis of Accounting.
• What are some advantages and disadvantages of alternatives to discounted cash flows? Include a real life example.
• What are the most used techniques in discounting cash flows?
• Explain two advantages and two disadvantages in using both the cash and the accrual basis of accounting.
• What is the advantage of using the direct method to present the statement of cash flows?
• Which of the following methods does not consider the investment's profitability? a) IRR b) NPV c) ARR d) Payback
• Which of the following does not require a hurdle rate? (a) NPV (b) IRR (c) Payback (d) Both (b) and (c).
• What are some of the other benefits/advantages of cash flow statements?
• Which of the following has the most favorable cash conversion cycle? a. DSO = 28, DOH = 32, DPO = 38. b. DSO = 30, DOH = 45, DPO = 10. c. DSO = 64, DOH = 48, DPO = 24. d. DSO = 45, DOH = 22, DPO = 12.
• What are the advantages and disadvantages of using the accrual basis of accounting rather than the cash basis?
• Explain the two reasons why the shorter the payback period the more attractive the investment is when the payback technique is used.
• What is a disadvantage of the simple rate of return?
• 1. What are the advantages and disadvantages for electing the reimbursem*nt payment option? 2. Would you use the reimbursem*nt payment option? Why or why not?
• Identify two disadvantages of using the payback period for comparing investments.
• (a) Describe cash accounting and accrual accounting systems. (b) What are the advantages and disadvantages of each?
• What are the advantages and disadvantages of borrowing money?
• What is the advantage and disadvantage of historical concept of accounting?
• What are some of the accounting implications of using electronic cash?
• Discuss the advantages and disadvantages of the following type of financing: Borrowing from bank.
• What is the principal disadvantage of the direct method of reporting cash flows from operating activities?
• What is the major weakness of the unadjusted rate of return method?
• What is the tax advantage of an accelerated depreciation method?
• What is the difference between cash paid for equipment and depreciation expense?
• Which of the following has the most favorable cash conversion cycle? A. DSO = 45, DOH = 22, DPO = 12 B. DSO = 64, DOH = 48, DPO = 24 C. DSO = 30, DOH = 45, DPO = 10 D. DSO = 28, DOH = 32, DPO = 38
• What is the effect on the claims side of the accounting equation when cash is collected in advance of performing services?
• What are the drawbacks of conventional payback screening? Give at least 3 examples.
• Discuss the advantages and disadvantages of the following type of financing: Equity financing.
• What are economic consequences of accounting manipulations?
• Discuss the advantages and disadvantages of the following type of financing: Issuing bonds.
• Identify some advantages of technology for accounting.
• What is the major criticism of the payback and simple rate of return methods of making capital budgeting decisions?
• What is the Indirect Cash Flow Method?
• What are the benefits of having a Petty Cash Fund available within a business?
• Describe the operation of a petty cash fund and its advantages.
• Describe the payback period method.
• What are the differences between the cash and accrual methods of accounting?
• What are the advantages and disadvantages of zero-based budgeting?
• Why is depreciation considered a non-cash expense?
• What are the advantages and disadvantages of using either cash or accrual basis of accounting? Why might a company be able to justify in using cash or accrual basis of accounting? Give examples
• What is the purpose of the statement of cash flows?
• Describe the advantages and disadvantages of using the statement of cash flows as a basis for evaluating the performance of a firm.
• How are expenses affected by petty cash?
• Contrast the advantages and disadvantages of the direct and indirect methods of preparing the statement of cash flows.
• What is petty cash, and how is it used? Provide examples.
• Explain why back depreciation is added back in the cash flow statement.
• How does gain on sale of equipment affect the cash flow statement?
• Which of the following is not an advantage of a subsidiary ledger?
• What are some of the disadvantages of using the LIFO method?
• Identify whether the following statement/phrase is an advantage or a disadvantage of the Income Statement: Depends on accounting methods selected.
• What is the financial statement impact of writing off a bad debt when using the allowance method?
• Discuss the pros and cons of using the payback method, as opposed to the net present value method of planning for capital projects.
• What is the accounting definition of cash or cash equivalents?
• How does selling equipment affect the statement of cash flows?
• What are the major advantages of the indirect method of reporting cash flows from operating activities?
• What is the Payback Method? When would the controller use this calculation? Name several advantages and disadvantages of using this method.
• Explain two advantages and two disadvantages in using both the cash and the accrual basis of accounting. Then, determine the one that you believe provides the most useful financial information to users.
• What role does Depreciation play in the Cash Budget?
• Explain the difference between the cash basis method versus the accrual method in accounting.
• What is the effect on the accounting equation when cash dividends are paid?
• What are the advantages in using worksheets when preparing a statement of cash flows?
• Explain the major advantages and disadvantages inherent in using both the cash and the accrual basis of accounting. Then, determine the one (1) that you believe provides the most useful financial information to users. Identify at least two (2) types of bu
• What are the major pros of the indirect method of reporting cash flows from operating activities?
• Which of the following methods does not consider the investment's profitability? a. Payback b. ARR c. NPV d. IRR
• What depreciation methods might be used for the computer system? Describe the advantages and disadvantages of each.
• What are the advantages and disadvantages of LIFO?
• What are the differences between net income and cash flow?
• What is the main difference between revenue and expense in accounting?
• What are the advantages of LIFO?
• What are the advantages and disadvantages of both debt and equity financing?
• How does the statement of cash flows sometimes cause a nonarticulation problem?
• What is the purpose of a cash flow statement?
• What purpose does a cash flow statement serve?
• What is the purpose of the cash flow statement?
• What effect will a decrease in inventory have on free cash flows?
• What is the effect on the accounting equation when cash dividends are paid? Explain.
• Which of the following are acceptable methods of computing depreciation? a. Declining-balance b. Straight-line c. Units-of-production d. All of the above
• Discuss three to five advantages and disadvantages of implementing an IT-based accounting system.
• What are the disadvantages of LIFO?
• What would be the advantage of using the LIFO inventory costing method?
• List the advantages and disadvantages of responsibility accounting.
• What are the advantages and disadvantages of the single step income statement?
• What is petty cash? What does a petty cash fund do?
• (a) What is the life-cycle costing method in accounting? (b) Describe its advantages and disadvantages.
• Evaluate the advantages and disadvantages of depreciation as an accounting concept.
• Which of the following is not a characteristic evaluated in ratio analysis? a. liquidity b. marketability c. solvency d. profitability
• What are the advantages of monetary targeting as a strategy for the conduct of monetary policy?
• What are the three statements of cash flows? What or how do we differentiate these?
• What is the primary reason accountants use an allowance method for bad debts?
• Define cash budget and mention some of its advantages.
• The payback method cannot be used if the cash inflows occur in unequal patterns. Do you agree or disagree? Explain.
• For the cash account to decrease and the profit to decrease, the transaction occurring could have been what?
• What are the advantages and disadvantages of IT investment?
• Which one of the following is not a characteristic generally evaluated in ratio analysis? a. Liquidity b. Profitability c. Solvency d. Marketability.
• What are four problematic situations that will make determining incremental cash flows difficult? What are two incremental cash flows that will occur at the investment outlay?
• What do "payoffs" represent in a payoff table?
• What are the advantages and disadvantages of long-term debt financing?
• Discuss the advantages and disadvantages of equity financing.