Which of the Following Will Not Increase a Present Value

question 149

Multiple Choice

Which of the following will not increase a present value?

• A) increase the interest rate
• B) decrease the number of periods
• C) increase the future value

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Definitions:

Perpetual Inventory System

A perpetual inventory system continuously tracks inventory levels and costs, updating records with each receipt or sale of goods.

Physical Inventory

The process of counting by hand the actual inventory that a company holds in its premises, as opposed to counting based on purchase and sale records.

Cost Of Goods Sold

Expenses directly incurred from the manufacturing of a company’s goods for sale, such as materials and labor.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.