How does net cash flow differ from net income and why is that difference relevant to financial decision making?

2. With regard to tax purposes, which type of depreciation methods do organizations prefer and why?

part 2:

1. AnalyzeROA and ROE and how each one fits into Profitability Ratios.

2. What is financial leverage? What are the benefits and risks associated with financial leverage?

part 3:

1. What are the differences between simpleinterest and compound interest

2. With regards to money: What arethe differences between future value and present value?

3. What considerations do you need to take when considering "time value of money"?

4. Why is the following statement true? "A dollar today is worth more than a dollar tomorrow."

part 4:

1. Explain the difference between required rate of return and expected rate of return. If they are different at a specific point in time, what does it mean?

2. What is the difference between an expected return and a total holding periodreturn?

3. How does investing in more than one asset reduce risk through diversification?

part 5:

1. What is opportunity cost and why is it an important concept in the capital budgeting process? The opportunity cost concept applies to almost every financial decision we make as individuals. Can you give an example from your own experience?

2. What is capital rationing from the perspective of capital budgeting?

3. Give an example of a strength and a weakness of the accounting rate of return approach.

part 6:

1. How is the concept of incremental analysis used in decision making?

2. What does it mean when someone says "You get what you measured"?

3. What are the impacts of information technology?

part 7:

1. What is relevant range?

2. Give two examples of costs that are variable costs and two examples of fixed costs.

part 8:

1. Explain the responsibility of the accounting department.

2. What is one advantage of having 2 costs pools (one for fixed costs and one for variable costs) for each service department?

part 9:

1.How would a manager use economic theory to determine profit-maximizing price for a service or product?

2. What is the process of target costing? How is target cost calculated?