Select the Correct Word for Each Sentence

question 33

Multiple Choice

Select the correct word for each sentence.
-The _____ reason for the test is to assess your skills.

• A) principle
• B) principal

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Value

Value of cash flows at a future date, taking into account interest accumulated between when the cash flow occurred and the future date.

Double-Declining Balance

An accelerated method of depreciation that doubles the rate at which an asset’s book value declines compared to straight-line depreciation.

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life.