Which of the Following Is True of the Discounting Factor

question 105

Multiple Choice

Which of the following is true of the discounting factor?

• A) The discounting factor is the reciprocal of compounding factor.
• B) The discounting factor is the sum of 1 and the rate of interest.
• C) The discounting factor is period n times the rate of interest.
• D) The discounting factor is computed by dividing period n by the sum of 1 and the rate of interest.

---

Definitions:

Misconduct

Inappropriate or illegal behavior by an individual or organization, often violating ethical standards or norms.

Expert Power

The influence wielded by an individual or group owing to their expertise, skill, or knowledge.

Influence Behavior

The process of affecting or changing someone’s actions, decisions, or opinions through indirect or direct methods.

Sarbanes-Oxley 404

A provision of the Sarbanes-Oxley Act that requires publicly traded companies to have an internal control report in their annual reports, aiming to enhance the accuracy of corporate disclosures.