Question 21 The Weighted Average inventory valuation method matches the physical inventory to its specific value.

True

False

Question 22

Which of the following inventory costing methods most closely matches the cost flow with the goods flow?

First-In-First-Out (FIFO)

Specific identification

Last-In-First-Out (LIFO)

Weighted average

Question 23

Accounting for inflation and changes in value to remaining inventory requires a manager to make:

cost-index assumptions

cost-flow assumptions

cost-of-goods-sold assumptions

cost-inflation assumptions

Question 24

All of the following are true about the perpetual inventory method except:

it provides more information than the periodic method

it provides more control than the periodic method

it provides more accuracy than the periodic method

it provides more cost savings than the periodic method

Question 25

Investment analysis is concerned with revenues and expenses.

True

False

Question 26

Critical Thinking:

Suppose that two projects each cost $12,000.

• Project A returns $4,000 a year for six (6) years.
• Project B returns $6,000 a year for two (2) years.

Which has the better payback period?

Project A

Project B

Question 27

What concept or principle holds that money received at different points in time is not equally valuable?

Principle of inflation

Time value of money

Net present value

Rate of return

Question 28

Healthcare organizations generally have a standard required rate of return for projects and investments.

True

False

Question 29

Cash flows of equal amounts, paid or received at evenly spaced periods of time (eg, weekly, monthly, annually) are referred to as:

Bonds

Dividends

Annuities

Equities

Question 30

The specific rate of return that a project is expected to generate is called the:

Internal rate of return

Required rate of return

Present rate of return

Net future value