The Present Value of $100 to Be Received in the Year

question 140

Multiple Choice

The present value of $100 to be received in the year 2014 is

• A) less than the present value of $100 to be received in 2015.
• B) greater than the present value of $100 to be received in 2015.
• C) the same as the present value of $100 to be received in 2015.
• D) greater than the present value of $100 to be received in 2015 if the interest rate in 2015 exceeds the interest rate in 2014; otherwise, it is less.

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Definitions:

Credits

Entries made on the right side of accounts, representing a decrease in assets or an increase in liabilities and equity.

Customers List

A compilation of information on clients who purchase goods or services from a business, often including contact details and purchase history.

QBO

QuickBooks Online, a cloud-based accounting software designed for small and medium-sized businesses.

Future Sales Revenue

The anticipated income a company expects to receive from its future sales activities.