Given a Set Future Value, Which of the Following Will

question 101

Multiple Choice

Given a set future value, which of the following will contribute to a lower present value?

• A) Higher discount rate
• B) Fewer time periods
• C) Less frequent discounting
• D)Lower discount factor

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Definitions:

Cost of Goods Sold

Expenses specifically related to producing the items that a business markets and sells.

Balance Sheet

This report presents a summary of a firm's financial status by listing its resources, debts, and the equity held by investors on a certain date.

Spreadsheet

A digital tool or program that allows users to organize, calculate, and analyze data across a grid of rows and columns.

Job-Order Costing

An accounting system used to ascertain costs for each job or project separately, often used in manufacturing or service industries where each job is different.