Cora Is Planning to Open a Restaurant

question 38

Multiple Choice

Cora is planning to open a restaurant. Before proceeding with the plan, she collects data on the operating standards of one her favorite restaurants that inspired her to open her own restaurant. This is an example of _____.

• A) delegation
• B) suboptimization
• C) benchmarking
• D) brainstorming

Analyze and interpret changes in balance sheet accounts and their impact on cash flow.

Compute cash received from customers using net sales and changes in related accounts.

Calculate cash paid to suppliers and employees by adjusting cost of goods sold and operating expenses to a cash basis.

Assess the effect of changes in balance sheet accounts on cash provided by (used in) operating activities.

---

Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Cash Inflows

The total amount of money being transferred into a business, typically from operating, investing, and financing activities.

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.