Which of the Following Statements Is False

question 72

Multiple Choice

Which of the following statements is false?

• A) FV =
• B) PV =
• C) FV = C_n × (1 + r)ⁿ
• D) Most investment opportunities have multiple cash flows that occur at different points in time.

---

Definitions:

Retained Earnings Statement

A financial report detailing the modifications in accumulated profits over a certain timeframe.

Prior Period Adjustments

Corrections of errors in financial statements of prior periods or adjustments for omitted transactions.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A form of equity stake that signifies ownership within a corporation, granting the owner the right to vote and a portion of the corporation's earnings via dividends.