Which of the Following Would Tend to Increase the Value

question 176

Multiple Choice

Which of the following would tend to increase the value of a future stream of income?

• A) an increase in the rate of inflation
• B) an increase in the interest rate
• C) a reduction in the interest rate
• D) a reduction in the size of the expected future income

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Definitions:

Long-term Asset

An asset that is not expected to be converted to cash or used up within one year of the balance sheet date.

Equipment

Tools, machinery, or apparatus designed for a specific operation or purpose.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols.

Intangible Asset

Assets that do not have physical substance but hold value for a business, such as patents, trademarks, and goodwill.