Accounting 285 exam 3

Exam Length: you may take up to 60 minutes

Format:- 20 multiple choice questions (4 pts per question for a total of 80 points + 1 bonus question)

– Questions are a mix of conceptual and computational

CHAPTER 8 (9 questions)

Understand time value of money –1 question

Evaluate the acceptability of an investment project using net present value including even and uneven cash flows – 2 questions

Evaluate the acceptability of an investment project using internal rate of return – 1 question

Understand payback period with even or uneven cash flows – 1 question

Understand the simple rate of return – 1 question

Understand differences and relations among different capital budgeting techniques – 1 question

Evaluate an investment project that has uncertain cash flow – 1 question

Rank investment projects in order of preference – 1 question

CHAPTER 9 (8 questions)

Understand why organizations budget and the processes they use to create budget – 2 questions

Prepare a master budget – 6 questions

CHAPTER 10 (4 questions)

ï‚·Create a flexible budget including activity and spending variances – 4questions

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