CSUF ACCT 201A (HOFFMAN) FINAL
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Accounting.
Answer: The process of recognizing, measuring, recording, and reporting
information about a business's transactions
◍ IRR.
Answer: The rate of return, based on discounted cash flows, of a capitol
investment. Interest rate that makes NPV = 0
◍ Job Ordering Cost.
Answer: 1) Accumulates cost for each person's unique batch2) Single unique
product or specialized service
◍ Process Ordering Cost.
Answer: 1) Accumulates the cost of each process needed to complete the
product over a period of time2) Identical units through a series of production
steps
◍ APR.
Answer: Measures the profitability of an investment
◍ NPV.
Answer: Measures the net difference between the present value of the
investment's net cash inflows and investment's cost.
◍ Business.
Answer: A legal organization that attempts to create value by exchanging
products with customers for money
,◍ Payback.
Answer: Measures the length of time it takes to recover, in net cash flows,
the cost of the initial investment.
◍ Discount Rate.
Answer: Management's minimum desired rate of return on a capitol
investment.
◍ Product.
Answer: A good or service purchased or produced by a business to be sold
◍ Goods.
Answer: Physical items that can be touched or felt
◍ Services.
Answer: Activities that exist but cannot be touched and felt
◍ Customer.
Answer: A person or organization that purchases a product from a business
◍ Which methods are more appropriate for long term investments?.
Answer: NPV or IRR
◍ Which method highlights risky investments?.
Answer: Payback
◍ Sale.
Answer: The exchange between a business and a customer whereby the
business provides a product to the customer and the business receives
money or money substitutes
◍ Value.
Answer: The price someone is willing to pay for an item
◍ Cost.
Answer: The amount of money or money substitutes a business pays to
receive an item used in operating a business
◍ Which method shows the effect of a company's accrual based income?.
, Answer: ARR
◍ Revenue.
Answer: The amount of money or money substitutes a business receives
from the sale of a product
◍ Profit.
Answer: The revenue from a sale less than the cost of the sale
◍ Risk.
Answer: The uncertainty that an undesired outcome could result
◍ Loss.
Answer: A negative profit that occurs when the cost of a sale is greater than
the revenue from the sale
◍ Stakeholder.
Answer: A person or organization affected by a business
◍ What makes the NPV of an investment to equal 0?.
Answer: IRR
◍ What requires management to identify the discount the discount rate when
used?.
Answer: NPV
◍ _____ provides management with info on how fast cash investments will
recoup..
Answer: Payback
◍ Liabilities.
Answer: Amounts owed to lenders or other creditors
◍ What does IRR show a company?.
Answer: The rate of return, using discounted cash flows, a company can
expect to earn by investing in the assets'.
◍ _____ does not consider the asset's profitability..
Answer: Payback
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Accounting.
Answer: The process of recognizing, measuring, recording, and reporting
information about a business's transactions
◍ IRR.
Answer: The rate of return, based on discounted cash flows, of a capitol
investment. Interest rate that makes NPV = 0
◍ Job Ordering Cost.
Answer: 1) Accumulates cost for each person's unique batch2) Single unique
product or specialized service
◍ Process Ordering Cost.
Answer: 1) Accumulates the cost of each process needed to complete the
product over a period of time2) Identical units through a series of production
steps
◍ APR.
Answer: Measures the profitability of an investment
◍ NPV.
Answer: Measures the net difference between the present value of the
investment's net cash inflows and investment's cost.
◍ Business.
Answer: A legal organization that attempts to create value by exchanging
products with customers for money
,◍ Payback.
Answer: Measures the length of time it takes to recover, in net cash flows,
the cost of the initial investment.
◍ Discount Rate.
Answer: Management's minimum desired rate of return on a capitol
investment.
◍ Product.
Answer: A good or service purchased or produced by a business to be sold
◍ Goods.
Answer: Physical items that can be touched or felt
◍ Services.
Answer: Activities that exist but cannot be touched and felt
◍ Customer.
Answer: A person or organization that purchases a product from a business
◍ Which methods are more appropriate for long term investments?.
Answer: NPV or IRR
◍ Which method highlights risky investments?.
Answer: Payback
◍ Sale.
Answer: The exchange between a business and a customer whereby the
business provides a product to the customer and the business receives
money or money substitutes
◍ Value.
Answer: The price someone is willing to pay for an item
◍ Cost.
Answer: The amount of money or money substitutes a business pays to
receive an item used in operating a business
◍ Which method shows the effect of a company's accrual based income?.
, Answer: ARR
◍ Revenue.
Answer: The amount of money or money substitutes a business receives
from the sale of a product
◍ Profit.
Answer: The revenue from a sale less than the cost of the sale
◍ Risk.
Answer: The uncertainty that an undesired outcome could result
◍ Loss.
Answer: A negative profit that occurs when the cost of a sale is greater than
the revenue from the sale
◍ Stakeholder.
Answer: A person or organization affected by a business
◍ What makes the NPV of an investment to equal 0?.
Answer: IRR
◍ What requires management to identify the discount the discount rate when
used?.
Answer: NPV
◍ _____ provides management with info on how fast cash investments will
recoup..
Answer: Payback
◍ Liabilities.
Answer: Amounts owed to lenders or other creditors
◍ What does IRR show a company?.
Answer: The rate of return, using discounted cash flows, a company can
expect to earn by investing in the assets'.
◍ _____ does not consider the asset's profitability..
Answer: Payback
