Samantha and Josephine Were Preparing to Start Their Own Clothing

question 16

Multiple Choice

Samantha and Josephine were preparing to start their own clothing business; they contacted their friend David, a recent graduate from Big State University's accounting program, to learn about setting up their accounting information system. After some discussion, they decided to use Quickbooks as their basic AIS software. Editing the standard chart of accounts to fit their clothing business would be part of ___ in Steps for Better Thinking.

• A)Identifying
• B)Exploring
• C)Prioritizing
• D)Envisioning

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Definitions:

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily reflecting its market value.

Maturity

Maturity refers to the date on which the principal or final payment of a debt, loan, or other financial instrument is due to be paid.

Annual Interest

Interest charged or earned over a period of one year on loans, savings, or investments.

Present Value

The current value of future cash flows discounted at the appropriate discount rate, reflecting the time value of money.