Which One of the Following Variables Is the Exponent in the Present

question 49

Multiple Choice

Which one of the following variables is the exponent in the present value formula?

• A)present value.
• B)future value.
• C)interest rate.
• D)time.
• E)There is no exponent in the present value formula.

---

Definitions:

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets.

Equity Method

An accounting technique used to record the investments in other companies, where the investment is significant but the investor does not have full control.

Patent

A legal right granted to an inventor for an exclusive period, typically 20 years, to exploit a new, useful, and non-obvious invention.

Consolidated Cash Flows

A statement merging the cash flows of a parent company and its subsidiaries to present the overall cash generated or used by the entire group.