Which of the Following Will Not Increase a Present Value

question 114

Multiple Choice

Which of the following will not increase a present value?

• A)Increase the interest rate
• B)Decrease the number of periods
• C)Increase the future value
• D)None of these answers is correct

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Definitions:

Hedged Item

An asset, liability, firm commitment, or highly probable forecast transaction identified by an entity to manage risks through a hedging relationship.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Hedge Accounting

An accounting method that recognizes the offsetting position of a hedge in the financial statements to reduce the volatility of earnings.

Foreign Currency Transactions

Deals or business activities that involve the exchange of currencies from different countries, impacting financial statements due to exchange rate changes.