Barkley Company Will Receive £300,000 in a Future Year

question 47

Multiple Choice

Barkley Company will receive £300,000 in a future year. If the future receipt is discounted at an interest rate of 8%, its present value is £189,051. In how many years is the £300,000 received?

• A) 5 years
• B) 6 years
• C) 7 years
• D) 8 years

---

Definitions:

Securities Exchange Act of 1934

A U.S. federal law that regulates the trading of securities, such as stocks and bonds, after the initial sale.

Good Faith Negligence Standard

A legal principle requiring individuals to act with honesty and without intent to defraud in situations where negligence is alleged.

Lead Audit Partner

The senior partner responsible for overseeing the audit process, ensuring compliance, and signing the audit report.

Rotate

The process of turning or moving something around a central point or axis.