Identification: Identify the best answer for each item.
16. It is the difference between the
17. These are activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.
18. What term is used to describe the negative consequences of a project to the public?
19. In evaluating single projects, what method is based on the concept of equivalent worth of all cash flows relative to some base or beginning point in time called the present?
20. These are transactions that do not require cash or cash equivalents should be excluded.
21. It is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.
22. In evaluating single projects, what method is based on the equivalent worth of all cash inflows and outflows at the end of the planning horizon (study period) at an interest rate that is generally the MARR.
23. This method presents operating cash flows as reconciliation from profit to cash flow. This means that depreciation is factored into your calculations.
24. It is a ratio used in a cost-benefit analysis to summarize the overall relationship between the relative costs and benefits of a proposed project.
25. This is usually a policy issue resolved by the top management of an organization in view of numerous considerations. It is sometimes called hurdle rate.
26. This refers to gains and losses from investments. Inflows include sales from business assets and payments from loans made by your business. Outflows include purchases of assets and loans made by your business.
27. It refers to the amount of time it takes to recover the cost of an investment.
28. In formulating alternatives when evaluating single projects, if no alternative is economically justifiable,what is the default selection?
29. In this method, operating cash flows are presented as a list of ingoing and outgoing cash flows.Essentially, the direct method subtracts the money you spend from the money you receive.
30. It is a metric used in financial analysis to estimate the profitability of potential investments. It is also a discount rate that makes the
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