Because the Nominal Interest Rate Is Always Positive,the Discount Factor

question 36

Multiple Choice

Because the nominal interest rate is always positive,the discount factor is always

• A)negative.
• B)greater than one.
• C)zero.
• D)less than one.

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Definitions:

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including its assets, liabilities, and equity.

Statement of Stockholders' Equity

A financial report detailing changes in the equity section of the balance sheet, including shares, dividends, and earnings over a period.

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.