Identify All Statements That Are Consistent with the Concept of Present

question 68

Multiple Choice

Identify all statements that are consistent with the concept of present value. (More than one answer may be correct.)

• A) The present value of a future amount is always less than that future amount.
• B) An amount of money available today is considered more valuable than the same sum which will not become available until a future date.
• C) A bond's issue price is equal to the present value of its future cash flows.
• D) The liability for an installment note payable is recorded at only the principal amount, rather than the sum of the scheduled payments.

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Definitions:

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor and capital.

Pharmaceuticals

Products and substances manufactured and sold for the diagnosis, treatment, or prevention of diseases and health conditions.

Automobiles

Motor vehicles designed for transporting passengers, commonly on roads, ranging from cars to buses.

Heckscher-Ohlin Theorem

An economic theory stating that countries export goods requiring abundant factors of production they possess, and import goods requiring factors they lack.