Which of the Following Statements Is TRUE

question 33

Multiple Choice

Which of the following statements is TRUE?

• A)People generally prefer to receive money later rather than sooner.
• B)Interest is a payment made by lenders to borrowers.
• C)The present value of a future payment will be lower the smaller the payment, the later it is due, and the higher the interest rate.
• D)The future value of a payment will be more if the interest rate is lower.

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Definitions:

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the wear and tear, deterioration, or obsolescence of the asset.

Commercial Substance

The aspect of a business transaction that causes a change in the cash flows or financial stability of the entities involved, indicating a genuine economic effect.

Exchange

A marketplace where securities, commodities, derivatives, or other financial instruments are traded.

Book Value

The net value of a company's assets minus its liabilities, often used to estimate the company's worth.