Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

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

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Definitions:

Borrowing Costs

Interest and other costs that an entity incurs in connection with the borrowing of funds.

Development Costs

Costs incurred in the design and implementation of new products or processes, which can often be capitalized and amortized over time.

Actuarial Gains

Increases in the projected benefits of a pension plan resulted from changes in actuarial assumptions or variance from expected experience.

Transition Date

The specific point in time at which a new policy, regulation, or accounting principle is adopted by an entity.