Select the Incorrect statement regarding postaudits of capital Investment decisions. Multiple Choice A postaudit should be conducted at the end of the project. The postaudit helps managemert determine whether a project that had been accepted should have been rejected. A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money. The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Capital Investment Decision Postaudit: Identifying Incorrect Statements**

**Multiple Choice Question:**

Select the **incorrect** statement regarding postaudits of capital investment decisions.

1. ○ A postaudit should be conducted at the end of the project.

2. ○ The postaudit helps management determine whether a project that had been accepted should have been rejected.

3. ● A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money.

4. ○ The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions.

**Explanation:**

The third statement is marked as incorrect. A postaudit is beneficial for all types of capital investment decisions regardless of the technique used, including those that do consider the time value of money. Postaudits provide valuable feedback and learning opportunities for improving future investment decisions.
Transcribed Image Text:**Capital Investment Decision Postaudit: Identifying Incorrect Statements** **Multiple Choice Question:** Select the **incorrect** statement regarding postaudits of capital investment decisions. 1. ○ A postaudit should be conducted at the end of the project. 2. ○ The postaudit helps management determine whether a project that had been accepted should have been rejected. 3. ● A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money. 4. ○ The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions. **Explanation:** The third statement is marked as incorrect. A postaudit is beneficial for all types of capital investment decisions regardless of the technique used, including those that do consider the time value of money. Postaudits provide valuable feedback and learning opportunities for improving future investment decisions.
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