Data Refers to

question 177

Multiple Choice

Data refers to

• A)subjective psychographic information collected by an organization upon which it bases subsequent actions.
• B)objective demographic information collected by an organization upon which it bases subsequent actions.
• C)the facts and figures related to the problem that is divided into two main parts: secondary data and primary data.
• D)information collected by a source other than the company itself used to determine the best possible solution to a problem.
• E)information collected from within a company used to determine which alternative within a solution set offers the greatest possible return on investment.

Learn the concept and calculation of the Profitability Index (PI).

Analyze projects using different financial metrics for better investment decisions.

Understand the impact of discount rates on project valuation.

Differentiate between projects based on their cash flow patterns and life spans.

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Definitions:

Accumulated Depreciation

The total depreciation costs applied to a fixed asset from the time of its acquisition.

Fair Market Value

The price at which a willing buyer and a willing seller, both possessing reasonable knowledge of relevant facts, would exchange an asset.

Journal Entry

A record in the books of accounts that represents a business transaction, involving at least two accounts to record the financial activity.

Amortization

The gradual reduction of a debt or the spreading out of capital expenses over a fixed period of time.