As the Time Period Until Receipt Increases, the Present Value

question 73

Multiple Choice

As the time period until receipt increases, the present value of an amount at a fixed interest rate

• A) decreases.
• B) remains the same.
• C) increases.
• D) Not enough information to tell.

---

Definitions:

Billable Hour

A unit of measure used to charge clients for services, representing one hour of work provided by a company or professional.

Accounting Standards

A set of principles and rules that define how financial transactions and statements should be recorded and reported.

Cost of Inventories

The total value of all the components that make up inventory, including materials, labor, and allocated overhead.

Fixed and Variable

Terms referring to costs within a business, where fixed costs do not change with the level of production or sales, while variable costs vary directly with the level of production.