The Present Value of $100 to Be Received One Year

question 144

Multiple Choice

The present value of $100 to be received one year from now

• A) is $100.
• B) is $110.
• C) is $90.
• D) cannot be determined without knowing the interest rate.

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Definitions:

IFRS

International Financial Reporting Standards - a set of accounting guidelines that provide the basis for cross-border financial reporting.

Specific Identification

An inventory valuation method in which the cost of each specific item in inventory is tracked and used to calculate cost of goods sold.

LIFO

Last In, First Out, a method of inventory accounting where items produced last are considered the first to be sold.

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods first added to inventory are the first to be sold.