Which of the Following Transactions Would Require the Use of the Present

question 14

Multiple Choice

Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value of an asset acquired or liability assumed?

• A)A rental agreement is entered into with the initial payment due immediately.
• B)A rental agreement is entered into with the initial payment due one month from the signing of the agreement.
• C)A note payable is obtained from a bank requiring monthly payments for six years, beginning at the end of the current month.
• D)A machine is acquired by paying $20, 000 cash and agreeing to pay equal annual amounts of $10, 000 each at the end of the next three years.

---

Definitions:

Impaired Attention

A reduced ability to focus on a task or concentrate for a normal period, which can negatively impact performance and productivity.

Falling Asleep

The transition from wakefulness to sleep, characterized by a decrease in bodily activity and consciousness.

Lack Of Sleep

The condition of not getting an adequate amount of rest or sleep, which can affect health and cognitive functions.

Somnambulism

Also known as sleepwalking, it is a behavior disorder originating during deep sleep leading to walking or performing other complex behaviors while asleep.