Which of the Following Tables Would Show the Smallest Value

question 54

Multiple Choice

Which of the following tables would show the smallest value for an interest rate of 8% for ten periods?

• A) future value of $1
• B) present value of $1
• C) future value of an ordinary annuity
• D) present value of an ordinary annuity

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Definitions:

Direct Method

A cash flow statement preparation technique that lists all major operating cash receipts and payments for the period.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.