________ Accounts Are Credit Accounts That Have a Single Borrowing

question 27

Multiple Choice

________ accounts are credit accounts that have a single borrowing limit and may be used and repaid on a repeated cycle.

• A) Charge
• B) Loan
• C) Checking
• D) Savings

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.

Future Value

The amount a present sum will grow into at a specified interest rate over a specified period of time.

Profitability Index

A calculation that determines the relationship between the costs and benefits of a proposed project through the ratio of present value of future cash flows over the initial investment.

Mutually Exclusive Projects

Projects in which the acceptance of one project will exclude the acceptance of the other projects due to constraints.