ACCT 2302 warm up vocab review

Question 1

__________tells you the length of time for a project to recoup its initial costs

Answer 1

payback method

Question 2

______________tells you the PV of cash inflows, net with PV of cash outflows

Answer 2

NPV (net present value)

Question 3

_____________approach is used when comparing the NPV between 2 projects when revenue is involved

Answer 3

total cost

Question 4

__________is a decision as to whether a proposed investment project is acceptable

Answer 4

screening/screen

Question 5

_________ is the average return the company must pay to its long-term creditors and stockholders (for the use of their funds)

Answer 5

Cost of Capital

Question 6

____________is a decision in which the acceptable alternatives must be ranked

Answer 6

Preference Decision

Question 7

____________approach is used when comparing NPV when no revenues are involved

Answer 7

Least Cost

Question 8

_____________ is a follow-up after the project has been completed to see whether or not the expected results were actually realized

Answer 8

Post-audit