Accounting Knowledge Quiz

Play an AI-generated podcast conversation about this lesson

Which term is often used as a synonym for accounting?

Management

Economics

Accountancy (correct)

Finance

What is the main focus of financial accounting?

Measurement, analysis, and reporting of information for internal use by management

Processing of information about economic entities

Recording of financial transactions

Preparation of financial statements for external users (correct)

What field of accounting focuses on information for internal use by management?

Financial accounting

Management accounting (correct)

Cost accounting

Tax accounting

What do practitioners of accounting commonly refer to themselves as?

Accountants Signup and view all the answers

Which term refers to the recording of financial transactions?

Financial accounting Signup and view all the answers

Which of the following is true about net present value (NPV)?

NPV depends on the interval of time between now and the cash flow. Signup and view all the answers

What does NPV provide a method for evaluating and comparing?

Capital projects and financial products with cash flows spread over time. Signup and view all the answers

What does the time value of money dictate?

Time affects the value of cash flows. Signup and view all the answers

Why would the promise to receive $1.00 20 years in the future be worth much less today?

Due to the decrease in the current value of future cash flows based on the chosen rate of return. Signup and view all the answers

What does the value of a cash flow depend on in addition to the interval of time?

The discount rate. Signup and view all the answers

Which of the following is true about net present value (NPV)?

NPV depends on the discount rate and the interval of time between cash flows. Signup and view all the answers

What does the time value of money dictate?

The value of cash flows over time. Signup and view all the answers

What is the main purpose of net present value (NPV)?

To evaluate and compare capital projects or financial products with cash flows spread over time. Signup and view all the answers

Why would the promise to receive $1.00 20 years in the future be worth much less today?

Due to the time value of money. Signup and view all the answers

What does the present value of a cash flow depend on?

The discount rate and the interval of time between now and the cash flow. Signup and view all the answers

Which of the following is true about net present value (NPV)?

NPV is used to evaluate capital projects with cash flows spread over time. Signup and view all the answers

What does the time value of money dictate?

The value of cash flows is affected by the passage of time. Signup and view all the answers

What is the main purpose of net present value (NPV)?

To provide a method for evaluating and comparing capital projects or financial products with cash flows spread over time. Signup and view all the answers

What does the value of a cash flow depend on in addition to the interval of time?

The discount rate. Signup and view all the answers

What does NPV account for?

The time value of money. Signup and view all the answers

Accounting Knowledge Quiz

Choose a study mode

Podcast

Questions and Answers

Which term is often used as a synonym for accounting?

What is the main focus of financial accounting?

What field of accounting focuses on information for internal use by management?

What do practitioners of accounting commonly refer to themselves as?

Which term refers to the recording of financial transactions?

Which of the following is true about net present value (NPV)?

What does NPV provide a method for evaluating and comparing?

What does the time value of money dictate?

Why would the promise to receive $1.00 20 years in the future be worth much less today?

What does the value of a cash flow depend on in addition to the interval of time?

Which of the following is true about net present value (NPV)?

What does the time value of money dictate?

What is the main purpose of net present value (NPV)?

Why would the promise to receive $1.00 20 years in the future be worth much less today?

What does the present value of a cash flow depend on?

Which of the following is true about net present value (NPV)?

What does the time value of money dictate?

What is the main purpose of net present value (NPV)?

What does the value of a cash flow depend on in addition to the interval of time?

What does NPV account for?

More Like This

Accounting Knowledge Quiz

Accounting Knowledge Quiz

Accounting Knowledge Quiz

Accounting Knowledge Quiz

Upgrade to continue