The process of determining the present value of a cash flow or a series of cash flows to be received or paid in the future is known as _____.

A. compounding
B. discounting
C. consolidation
D. amortization
E. annualizing


Answer: B

Business

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The _____ for preparing the Statement of Cash Flows begins with net income and adjusts that amount for noncash items

a. indirect method b. direct method c. income method d. bottom-up method e. top-down method

Business

In cycle counting, the frequency of item counting and stock verification usually varies from item to item depending upon the item's classification

Indicate whether the statement is true or false

Business

A company uses the perpetual inventory system and recorded the following entry:Accounts Payable2,500 Merchandise Inventory 50Cash 2,450This entry reflects a:

A. Purchase of merchandise on credit. B. Payment of the account payable less a 2% cash discount taken. C. Payment of the account payable less a 1% cash discount taken. D. Sale of merchandise on credit. E. Return of merchandise.

Business

Component J is ordered on February 1, is received, and is ready to use on February 8. Its planning lead time is seven days

Indicate whether the statement is true or false.

Business