What Is the Present Value Today of an Ordinary Annuity

question 16

Multiple Choice

What is the present value today of an ordinary annuity cash flow of $3,000 per year for forty years at an interest rate of 6.0% per year?

• A)$120,000.00
• B)$1,327,777.67
• C)$45,139.89
• D)$32,270.87

Understand the accounting treatment for raw materials purchases and their flow through inventory accounts.

Comprehend the principles of internal control within the context of job order cost accounting.

Know the impact of sales on cost accounts like Cost of Goods Sold and Work in Process Inventory.

Differentiate between job order costing and process costing with respect to their application scenarios.