The time value of money concept recognizes that a dollar today is worth more than a dollar tomorrow. Which of the following is not a factor in causing the present value of cash inflows to diminish over time?
A. Earning potential, such as interest.
B. Risk of uncollectibility.
C. Inflation reduces future purchasing power.
D. Current expenses.
Answer: D
You might also like to view...
From the adjusted trial balance given below for the Grayson Company, prepare a multiple-step income statement in good form. Salaries expense and building depreciation expense should be equally divided between selling activities and the general and administrative activities. Grayson CompanyAdjusted Trial BalanceDecember 31?DebitCreditCash$ 19,500?Accounts receivable27,000?Merchandise inventory38,000?Office supplies1,200?Store equipment80,000?Accumulated depreciation-store equipment?$ 25,000Building260,000?Accumulated depreciation-building?121,600Accounts payable?28,500Salaries payable?10,000Common stock?100,000Retained earnings?69,900Dividends45,000?Sales?450,000Sales discounts8,000?Sales returns and allowances24,500?Cost of goods sold210,000?Salaries
expense38,000?Depreciation expense-store equipment16,000?Depreciation expense-building24,000?Advertising expense12,300?Office supplies expense3,500?Gain on disposal of store equipment?3,000Interest expense1,000?Totals$808,000$808,000 What will be an ideal response?
Schemas are:
a) Mental or cognitive models or patterns that people apply to understand and explain certain situations and events. b) Frameworks that allow us to fill in information in social settings. c) Useful in that they allow us to process information quickly. d) All of the above
Which of the following is not a characteristic feature of venture capital firms?
A) Funding just one or a small number of firms B) Holding equity in the firms that are funded C) Having a long-term investment horizon D) Providing advice and assistance to the firms that are funded
The design of an organization should provide for communication in four distinct directions. What are these directions?
What will be an ideal response?