Data Analytics for Accounting

The process of changing the values in various input cells to see how they might affect the output is called foregone costs.

The __________ is the interest rate that makes the present value of cash inflows just equal to the present value of cash outflows.

Whether the investment returns arrive in year 1 versus year 2 will make a difference on the calculation of internal rate of return.

__________ analytics identifies the best possible option given constraints or changing conditions.

Scenario analysis is __________.

What is the internal rate of return for a $33,000 investment (−33,000 at year zero) and cash inflows of $10,000 per year for years 1 through 4?

Prescriptive analytics helps identify the best decision based on constraints or changing __________.

An objective of financial accounting is to help investors and other users in assessing the amounts, __________, and __________of future cash cash-flows.

Using three different possible interest rates to evaluate their possible impact on the outcomes of investments is called sensitivity analysis.

An accounting rate of return is the percentage of return expected on an asset compared to the initial investment cost.

This is the correct calculation of net present value a new piece of equipment that is expected to cost $200,000 at the time of purchase (Year 0) and returns $150,000 per year for three years, and a cost of capital of 10%.

Whether the investment returns arrive in year 1 versus year 2 will not make a difference on the calculation of net present value.

A series (such as monthly or annually) of fixed payments is called a(n) __________.

Cisco, a provider of modems and routers has decided it is more profitable to outsource its production than to make it themselves. To decide this, they have performed __________.

Prescriptive analytics will often build upon descriptive, diagnostic, or predictive analytics.

The decision of which major expenditures and projects a company will invest in is traditionally called __________.

Future modelling is a representation of the financial outcomes resulting from a decision or future event.

The interest rate calculated to the point where the present value of cash inflows is equal to the present value of cash outflows is called __________.

A complete payment made all at one time, is called an annuity.

Prescriptive analytics will optimize the decisions based on the forecast of the future.