Which of the Following Actions Will DECREASE the Present Value

question 40

Multiple Choice

Which of the following actions will DECREASE the present value of an investment?

• A)Decrease the interest rate.
• B)Decrease the future value.
• C)Decrease the amount of time.
• D)All of the above will decrease the present value.

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Accounts Payable

A liability account on a company’s balance sheet representing money owed to creditors for goods and services purchased on credit.

Special Journals

Accounting journals designed for recording specific types of transactions in detail, such as sales, purchases, cash receipts, and disbursements, for efficient processing.

Cash Receipts Journal

A dedicated accounting ledger for documenting all cash inflows.