If the Present-Value Interest Factor for I Percent and N

question 48

Multiple Choice

If the present-value interest factor for i percent and n periods is 0.270, the future-value interest factor for the same i and n is

• A) 0.730.
• B) 3.797.
• C) 3.704.
• D) 3.777.

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Definitions:

Cost Of Goods Sold

An expense reported on the income statement, representing the total cost of products sold, including the cost of materials and labor.

Perpetual Inventory System

An inventory management system where updates to inventory levels are made continuously as transactions occur, providing a real-time view of stock levels.

Accounts Payable

Accounts Payable represents short-term financial obligations owed by a business to its suppliers or creditors for goods and services received.

Perpetual Inventory System

An inventory management method that continuously updates the balance of merchandise by recording each sales and purchase transaction.