What Is the Future Value of $2,000 Deposited for One

question 55

Multiple Choice

What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually?

• A) $120
• B) $2.000
• C) $2,120
• D) $4,120

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Definitions:

Warranty Expense

It represents the cost associated with the repair or replacement of defective products under warranty.

Journal Entry

A record in the accounting journal that consists of a debit and credit entry and describes a business transaction.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Working Capital

The gap between a firm's immediate assets and its short-term obligations, reflecting the funds available for daily operations.