The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received
A) decreases; decreases
B) decreases; increases
C) increases; increases
D) increases; decreases
C
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A plant site donated by a city to Pluto Company, which plans to open a new factory, should be recorded on Pluto's books at
A) the out-of-pocket cost of taking title to it. B) the fair value of the property. C) zero value, but footnoted. D) the value assigned to it by the company's directors.
Once a corporation issues bonds, it must pay interest to the bondholders over the life of the bonds, usually semi-annually, and the principal of the bonds at maturity
Indicate whether the statement is true or false
At acquisition, debt securities are:
A. Not recorded, because no interest is due yet. B. Recorded at cost. C. Recorded at their cost, plus total interest that will be received over the life of the security. D. Recorded at cost plus the amount of dividend income to be received. E. Recorded at the amount of interest that will be received over the life of the security.
What are the three realities of forecasting that companies face?
What will be an ideal response?