1. Which of the following is an advantage of the payback period method?

good screening device

provides a comparison to the accounting rate of return

shows profitability

considers the time value of money

2.Project 1 has a NPV of $15,000 and an IRR of 20%. Project 2 has a NPV of $10,000 and an IRR of 35%, but cost nothing upfront. Which project should you invest in?

Project 2

none of the above

Project 1

both

3.Capital budgeting decisions are based upon a ______________analysis.

sunk and opportunity

depreciation and interest

revenue and expense

benefit and cost

4.Which type of internal control impacts how the company operates?

accounting

leadership

administrative

governance

5.Which of the following is not reason why the hospitality industry is susceptible to fraud and theft?

Group of answer choices

cash business

segregation of duties

valuable goods

low perceived social status

6.It is impossible for an operation to generate profits (income flow) yet have a negative cash flow (cash disbursements exceed cash receipts):

Group of answer choices

True

False