Given the Tools and Training That Accountants Currently Possess, Which

question 37

Multiple Choice

Given the tools and training that accountants currently possess, which of the following sources of data presents the most challenges with respect to data manipulation and analysis?

• A)Operational sources
• B)Mechanical sources
• C)Social sources
• D)All are equally challenging

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Definitions:

Cost of Capital

The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.

Average Return

A statistical measure representing the mean outcome or yield from an investment over a given period of time.

NPV

Net Present Value; a calculation used to determine the value of an investment by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.