An investment carries an interest rate of 8 percent compounded annually. When using the time value of money functions of a financial calculator, the interest rate is entered as 8, whereas it is entered as 0.08 when using a spreadsheet to make the time value of money calculations.
Answer the following statement true (T) or false (F)
True
The interest rate is entered as a percentage (8 in the example) in the financial calculator, whereas it is entered as a decimal (0.08 in the example) in the spreadsheet. See 4-2: Future Value (FV)
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Long-term investments are usually held as an investment of cash for use in current operations.
Answer the following statement true (T) or false (F)
The allocation of a plant asset's cost to expense over its useful life is called ________
A) residual value B) book value C) accrued revenue D) depreciation
The Fish House, a seafood restaurant, obtains from Guaranty Insurance Company a policy that pro¬vides if a dispute arises between the parties concerning the settle¬ment of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is
a. an antilapse clause. b. an arbitration clause. c. an appraisal clause. d. an incontestability clause.
Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at
A. more than $500. B. more than $5,000. C. more than $50,000. D. any price.