Answer the following statements true (T) or false (F)

1. The time value of money is used to determine the market price of a bond.
2. Simple interest means that interest is calculated on the principal and on all previously earned interest.
3. A stream of unequal cash payments made at equal time intervals is called an annuity.
4. Compound interest means that interest is calculated only on the principal amount.
5. The process for calculating present values is often called present valuing cash flows.


1. TRUE
2. FALSE - Explanation: Compound interest means that interest is calculated on the principal and on all
previously earned interest.
3. FALSE - Explanation: A stream of equal cash payments made at equal time intervals is called an
annuity.
4. FALSE - Explanation: Simple interest means that interest is calculated only on the principal amount.
5. FALSE

Business

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The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to:

A) the duration of the license. B) the amount of royalties Johnson agreed to pay. C) Bayer's attempts to circumvent FDA policies. D) the exclusive nature of the license agreement. E) the hostile arrangement between Bayer and Johnson.

Business

In testing plant and equipment balances, an auditor may physically inspect new additions listed on the summary of plant and equipment transactions for the year. This procedure is designed to obtain evidence concerning management's assertions about classes of transactions and events, and specifically, which assertion?

A. Authorization. B. Occurrence. C. Classification. D. Cutoff.

Business

Mason’s research on business practices in Cyprus has been criticized for relying on responses to questionnaires gathered at a single point in time. It appears that Mason’s research suffers from the common critique of international and cross-cultural research of ______.

A. assuming country homogeneity B. parochialism C. lack of relevance D. reliance on a single method

Business

The National Institute for Occupational Safety and Health functions primarily as a research facility that attempts to make its findings on hazards available to those who can use them

Indicate whether the statement is true or false

Business