Using the Following Partial Table of Present Value of $1

question 102

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received four years hence, with earnings at the rate of 10% a year:

• A) $13,660
• B) $12,720
• C) $15,840
• D) $10,400

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Definitions:

Materials Requisition Slip

A document authorizing the issuance of raw materials from the storeroom to production.

Cost Per Unit

A measure of the cost incurred to produce, acquire, or create one unit of a product or service.

Stock Number

A unique identifier assigned to a particular stock of goods or securities for identification and inventory management.

Internal Control

Measures and tactics adopted by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and avert deceit.