Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
   1. Payback & ARR - self-test questions
   2. Discounted cash flow - self-test questions
   3. Inv. appraisal techniques - short answer questions
   4. Quantitative factors - numerical questions (1)
   5. Quantitative factors - numerical questions (2)
   6. Investment appraisal - quantitative factors - numerical questions 2
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

Inv. appraisal techniques - short answer questions

Question 1

Define the term 'screening test' (or 'criterion level').

Question 2

Explain the term 'time value of money'.

Question 3

Explain what a net present value (NPV) of +$256 at a 20% discount factor tells you about a project.

Question 4

Outline how a residual value affects the average rate of return.

Question 5

Explain the meaning of the payback period for an investment and why this might be considered a measure of risk rather than profitability.