Answer the following statements true (T) or false (F)
1. The fact that invested cash earns interest over time is called the time value of money.
2. An annuity is a stream of equal cash payments made at equal time intervals.
3. All else being equal, the shorter the investment period, the higher the total amount of interest earned.
4. Compound interest means that interest is calculated only on the principal amount.
5. Compound interest assumes that all interest earned will remain invested and earn additional interest at the same interest rate.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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________ is a measure of the probability that a product will not malfunction or fail within a specified time period
A) Reparability B) Durability C) Reliability D) Specialty E) Compatibility
Which of the following is required by accounting standards for the presentation and disclosure of investments in marketable securities?
a. By classification as trading, available-for-sale or held-to maturity. b. For an analyst's determination of liquidity. c. For the company's physical possession of the security versus agent holdings. d. For the expected success of the organization of investment.
Which of the following statements is not true?
a. A qualified opinion or an adverse opinion may bring into question the reliability of the financial statements. b. A disclaimer of opinion indicates that one should not look to the auditor's report as an indication of the reliability of the statements. c. In some cases, outside accountants are associated with financial statements when they have performed less than an audit. d. A review is substantially less in scope than an examination in accordance with generally accepted auditing statements. e. The accountant's report expresses an opinion on reviewed financial statements.
____________ lies where the product has a strong feature in an area that is important to the target and the competition is weaker.
a. Position b. Competitive advantage c. Differentiation d. Brand position e. Brand equity