Which Statement Is False

question 82

Multiple Choice

Which statement is false?

• A)The factor for the future value of an annuity due is found by multiplying the ordinary annuity table value by one plus the interest rate.
• B)The factor for the present value of an annuity due is found by multiplying the ordinary annuity table value by one minus the interest rate.
• C)The factor for the future value of an annuity due is found by subtracting 1.00000 from the ordinary annuity table value for one more period.
• D)The factor for the present value of an annuity due is found by adding 1.00000 to the ordinary annuity table value for one less period.

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Definitions:

Insurance Premium

The amount of money an individual or business must pay for an insurance policy, securing protection or coverage against specific risks.

Credit Period

The length of time allowed by a creditor for a borrower to make payment on a merchandise or loan without incurring interest or penalties.

Work-in-progress

Inventory that includes materials that have been partially processed but are not yet finished goods in the manufacturing process.

Finished Good

A product that has completed the manufacturing process and is ready for sale to customers.