Doubling the Future Value Will Cause The

question 105

Multiple Choice

Doubling the future value will cause the:

• A) present value to double.
• B) present value to decrease.
• C) present value to increase by less than 100%.
• D) interest rate, i, to decrease.

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Definitions:

Unrealized Loss-Income

Financial losses or gains that have occurred on paper due to changes in asset values but are not realized until the asset is sold.

Unrealized Gain or Loss-Equity

Increases or decreases in the value of held investments that have not yet been sold, affecting the equity portion of the balance sheet.

Stockholders' Equity

The net worth of a company, calculated as total assets minus total liabilities, representing the ownership interest of shareholders in the corporation.

Contra Asset

An account that offsets an associated asset account, with common examples being accumulated depreciation and allowance for doubtful accounts.