Answer:
takeoff
Explanation:
Takeoff is a stage marked by rapid economic growth based upon a few key economic industries or sectors, such as steel, railroads, textiles, and food production. Drive to maturity is a stage where the economy continues to grow and to diversify from the handful of industries that drove growth in the previous stage.
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Answer:
1. Decrease in accounts payable during a period - Deducted from net income (B)
2. Declaration and payment of a cash dividend - Cash outflow (financing activity
) (E)
3. Loss on disposal of land - Added to net income (A)
4. Decrease in accounts receivable during a period - Added to net income (A)
5. Redemption of bonds for cash - Cash outflow (financing activity) (E)
6. Proceeds from sale of equipment at book value - Cash inflow (investing activity
) (D)
7. Issuance of common stock for cash - Cash inflow (financing activity) (F)
8. Purchase of a building for cash - Cash outflow(investing activity
) (C)
9. Acquisition of land in exchange for common stock - Significant non-cash (investing and financing activity
) (G)
10. Increase in inventory during a period - Deducted from net income (B)
Answer: OPTION C
Explanation The answer to this question is cash payback and average rate of return method.
Capital rationing is the method used by companies to effectively allocate the limited funds a company has on alternative funds.
Under payback period method the company evaluates how much time will it take a project to recover its initial cost and as per average rate of return method the company evaluates the return generated from the net income, it does not take into consideration the time value of money.
