What Is the Present Value of $575 in a One

question 160

Multiple Choice

What is the present value of $575 in a one year if the current rate of interest is 4 percent?

• A)$410.71
• B)$552.88
• C)$598
• D)$805

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Definitions:

Allowance Method

An accounting technique used to account for bad debts, where companies estimate uncollectible accounts receivable and record them as an allowance for doubtful accounts.

Loss Recovery

The process of recouping funds that were previously recorded as a loss, usually through insurance claims or reimbursements.

Market Valuation

A financial assessment of the current worth of an asset or company based on market prices.

Periodic Inventory

A method of inventory valuation where inventory is physically counted at specific intervals, typically the end of a fiscal year, to determine the cost of goods sold.