If the Present Value of a Given Sum Is Equal

question 27

Multiple Choice

If the present value of a given sum is equal to its future value, then

• A)the discount rate must be very high
• B)there is no inflation
• C)the discount rate must be zero
• D)none of the answers is correct

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Definitions:

Debit Memo

A document issued by a buyer to a seller to correct errors, reduce amounts owed, or return funds in the case of an overpayment.

Perpetual Inventory System

An inventory management system where updates are made continuously as transactions occur, keeping a real-time track of inventory levels.

Freight Charges

Costs associated with the transportation of goods, typically paid by the shipper to the carrier.

Inventory Purchase

The acquisition of goods and materials that a company holds for the purpose of resale or production.