Someone Who Has to Make a Choice Involving Whether to Receive

question 64

Multiple Choice

Someone who has to make a choice involving whether to receive a certain amount of money now or in the future, will probably choose _______ , since there is a(n) ________ in waiting to use money.

• A) the future; benefit
• B) now; opportunity cost
• C) the future; opportunity cost
• D) now; benefit

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by a corporation or government to bondholders, to be repaid at a future date.

Receipts

Refers to the total amount of money received by a company during a specific period, often from sales of goods or services.

Bonds Payable

A long-term liability where a borrower agrees to pay the principal and interest to bondholders at specified dates.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends, reflected in a company's cash flow statement.