Accounting Terminology
Listed Below Are Eight Technical Accounting Terms Introduced

question 110

Essay

Accounting terminology
Listed below are eight technical accounting terms introduced or emphasized in this chapter.
Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
____ (a) The process of analyzing investments in plant assets.
____ (b) The number of years required to recover the entire cost of an investment from its net cash flows.
____ (c) A stream of equal cash flows to be received or paid.
____ (d) The estimated average annual income of an investment expressed as a percentage of its initial cost.
____ (e) The numerator in the return on average investment computation.
____ (f) The amount an investor should be willing to pay today for the right to receive a specified amount of cash at a specified future date.
____ (g) The process of computing the present value of future cash flows.
$$\begin{array} { | l | l | } \hline \text { Capital budgeting } & \text { Return on average investment } \\\hline \text { Payback period } & \text { Average investment } \\\hline \text { Discounting } & \text { Incremental cash flows } \\\hline \text { Annuity } & \text { Net present value } \\\hline\end{array}$$

Understand the relationship between indifference curves, budget lines, and consumer equilibrium.

Understand the concept and purpose of Management by Objectives (MBO) and its impact on productivity.

Identify and describe the four dimensions of job crafting behaviours, with examples.

Recognize the importance of top management's full commitment to the successful implementation of MBO.

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Definitions:

Internal Validity

Refers to how well a study is conducted, specifically whether it establishes a causal relationship between variables.

Causal Relationship

A connection between variables where a change in one directly influences the change in another.

Length Of Test

The duration or number of items that constitute a test, influencing factors such as assessment fatigue and comprehensiveness of evaluation.

Horizontal Axis

In a graph or chart, the x-axis running left to right and typically used to represent the independent variable or time period.