Joshua, the Director of Training, Must Demonstrate to the Top

question 104

Multiple Choice

Joshua, the director of training, must demonstrate to the top management the amount of financial benefits the company has realized from the expenditure on the mechanics training program. Joshua needs to prepare a(n) :

• A) return-on-investment analysis.
• B) net gain calculation.
• C) actual versus proposed budget comparison.
• D) results evaluation.

Understand the impact of salvage value and depreciation on the economics of investment projects.

Analyze the effect of working capital changes on investment cash flows.

Perform incremental cost analysis to compare alternative investment options.

Appreciate the significance of the discount rate in the time value of money.

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Definitions:

Adjusting Entries

Journal entries made in accounting to update the accounts and bring them to their correct balances before the preparation of financial statements.

Period End

The conclusion of a specific accounting period, at which point financial statements are prepared.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Adjusting Entries

At the conclusion of an accounting cycle, entries are documented in the accounting ledger to distribute revenues and costs to the actual period they happened.