Future Value Is Best Defined As

question 209

Multiple Choice

Future value is best defined as:

• A) An amount of money received each period for a stated number of periods.
• B) The amount an investment is worth in today's dollars.
• C) The dollar amount invested today at a stated rate of interest for some period of time.
• D) The amount an investment is worth at the end of some stated period of time.
• E) The cash value of an investment in today's dollars based on a stated rate of interest.

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Definitions:

Retained Earnings

Cumulative net income of a company that has not been distributed to shareholders as dividends, reinvested in the business.

Non-Controlling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Consolidated Shareholders' Equity

This is the total equity owned by shareholders as reported in the consolidated financial statements of a parent company and its subsidiaries.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically through owning a large percentage of its stock.