A Change in the _________________________ or _________________________ Will Not Change

question 74

Short Answer

A change in the _________________________ or _________________________ will not change a preset series of cash flows,however it will change the present value of those cash flows.

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Definitions:

Fair Value

The amount one would obtain from the sale of an asset or the cost incurred to settle a liability in a smooth transaction involving market players on the date of valuation.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.

Unrealized Profits

Profits that have been generated on paper through an investment but have not yet been realized through a sale.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost without reflecting changes in market value.