Using the Tables Above,what Is the Present Value of $3,000

question 186

Multiple Choice

Using the tables above,what is the present value of $3,000 (rounded to the nearest dollar) to be received at the end of each of the next 4 years,assuming an earnings rate of 12%?

• A) $10,815
• B) $7,206
• C) $9,111
• D) $1,908

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Definitions:

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the US.

IASB

International Accounting Standards Board, the organization responsible for developing and publishing international financial reporting standards.

Right-Of-Use Asset

Right-of-use asset is a balance sheet item that represents a lessee’s right to use an asset over the lease term under the new accounting standards.

Performance Obligation Approach

An accounting method that recognizes revenue when a company satisfies a performance obligation by transferring a promised good or service to a customer.