If the Present Value Annuity Factor at 12% for Five

question 9

Multiple Choice

If the present value annuity factor at 12% for five years is 3.6048,what is the equivalent future value annuity factor?

• A)2.0455
• B)6.3529
• C)1.7623
• D)5.1237

---

Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to calculate net cash provided by operating activities.

Operating Activities

Transactions and events central to the principal revenue-producing activity of the business, detailed in the cash flow statement.

Comparative Balance Sheet

A financial statement that presents the company's financial position at two or more points in time, facilitating the analysis of trends and changes.

Cash Dividends

Payments made by a corporation to its shareholder members, usually in the form of cash from its current or retained earnings.