The following are 10 technical accounting terms introduced

or emphasized
The following are 10 technical accounting terms introduced or emphasized

The following are 10 technical accounting terms introduced or emphasized in this chapter:

Each of the following statements may (or may not) describe one of these technical terms. For
each statement, indicate the accounting term described, or answer “None” if the statement
does not correctly describe any of the terms.
a. The examination of differences among revenue, costs, and cash flows under alternative
courses of action.
b. A cost incurred in the past that cannot be changed as a result of future actions.
c. The process of planning and evaluating proposals for investments in plant assets.
d. The average annual net income from an investment expressed as a percentage of the
average amount invested.
e. The length of time necessary to recover the entire cost of an investment from resulting annual
net cash flows.
f. The present value of an investment’s expected future cash flows.
g. The amount of money today that is considered equivalent to the cash flows expected to take
place in the future.
h. The required rate of return used by an investor to discount future cash flows to their present
value.
i. Often an investment’s final cash flows to be considered in discounted cash flowanalysis.

The following are 10 technical accounting terms introduced or emphasized

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