What Is the Present Value of a $500 Payment in One

question 154

Multiple Choice

What is the present value of a $500 payment in one year when the discount rate is 5 percent?

• A) $475.00
• B) $476.19
• C) $500.00
• D) $525.00

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Definitions:

Single-Step Statement

An income statement in which all revenues are summed together and all expenses are subtracted in a single step to calculate net income.

Multiple-Step Statement

A detailed income statement that separates operating revenues and expenses from non-operating ones, providing insights into different aspects of a company's performance.

Revenue Statement

A financial document detailing a company's revenue over a specific period, illustrating how the revenue translates into the net income.

Income From Operations

Earnings generated from a company's core business activities, excluding revenues and expenses from non-operational activities.