If an Organization Has an Obligation to Pay $5,000 to a Supplier

question 17

Multiple Choice

If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation:

• A) is less than $5,000.
• B) is $5,000.
• C) is more than $5,000.
• D) could be calculated using an annuity factor from the present value tables.

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Definitions:

Lesion

Any abnormal tissue change or damage in the body caused by disease or injury.

Affiliation Motive

An individual's need to form connections with others, feeling a desire for close relationships as part of their social instinct.

Approval

A formal or official agreement or sanction.

Reproductive Success

The passing of genes to the next generation in a way that they too can pass on those genes.