Accounting Terminology Listed Below Are Eight Technical Accounting Terms Introduced or Emphasized

question 30

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 average 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.

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Definitions:

Registration

A legislated requirement for incorporating a company in some jurisdictions in Canada.

Personal Property Security Act

A body of law that governs the rights of creditors and debtors with respect to personal property used as security.

Secured Transaction

A collateral right to debt giving the creditor the right to take back the goods or intercept the debt owing used as security in the event of default.

Division I Proposal

An alternative to bankruptcy, created by the Bankruptcy and Insolvency Act, whereby the debtor secures some time to reorganize his affairs and make a proposal for partial payment that will satisfy his creditors; if the creditors reject the proposal, the insolvent debtor is deemed to have made an assignment in bankruptcy from the day of the meeting of the creditors, and the normal bankruptcy procedures follow.