Which one of the following statements is correct concerning the time value of money?
A) The future value of $1 at the end of two years is equal to $1 plus the first year's interest times 1 plus the annual interest rate.
B) As the interest rate increases for any given year, the future value interest factor will decrease.
C) The future value of $1 decreases with the passage of time.
D) The future value interest factor is equal to zero if the interest rate is zero.
Answer: A
You might also like to view...
Under the mandates of the Racketeer Influenced and Corrupt Organizations Act (RICO), an individual injured by the racketeering activity of a company can:
A. claim only up to two times the damage plus attorneys' fees. B. claim three times the damage plus attorneys' fees. C. claim four times the damage plus attorneys' fees. D. recover the basic amount lost plus attorneys' fees.
Jeff needs to coach his subordinate Derin. Jeff has conducted a situational analysis and has identified the strengths and weaknesses of Derin. He has also communicated these to Derin. According to the coaching process, which is the next step that Derin should take?
A. She should determine which action plan to use. B. She should encourage Derin to generate action plans. C. She should assess the need and goals of coaching. D. She should conduct a self-assessment.
Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description.
A. Cash basis revenue B. Accrual-basis expense C. Accrual-basis revenue D. Cause-and-effect E. Revenue recognition principle F. Cash-basis expense
If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.
Answer the following statement true (T) or false (F)