Situational Judgment Tests ________

question 51

Multiple Choice

Situational judgment tests ________.

• A) have very high adverse impact
• B) involve applicants' descriptions of how they would behave in work scenarios
• C) are based on applicants' evaluations of photographs
• D) have very low validity

Recognize the accounting treatment for trade discounts and purchase discounts.

Identify the ownership and responsibility for freight costs in FOB shipping point and FOB destination terms.

Comprehend the role and recording of sales tax in accounting entries.

Understand the advantages of taking sales discounts for buyers.

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Definitions:

NPV

Net Present Value - a financial metric used to evaluate the profitability of an investment or project, taking into account the time value of money by discounting future cash flows.

Cash Flow

This refers to the movement of money into and out of a business, and is critical for assessing the liquidity and operational efficiency of the company.

Discount Rate

The rate of interest that is utilized in a DCF analysis for calculating the current value of anticipated cash flows.

NPV

Net Present Value is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.