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Lemur [1.5K]
2 years ago
14

Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this in

creases the present value of your future payment. True False
Business
1 answer:
stepladder [879]2 years ago
5 0

Answer:

False

Explanation:

When value of money is evaluated over time, the interest rate is put into consideration.

Present value of future cash flows of a loan is an estimate of how much will be paid on a certain amount given a specific interest rate over a period of time.

So if there is a fall in interest rate it means that less of the original amount is being discounted, so present value increases.

On the other hand when interest rate increases more of original amount is discounted. So the present value reduces.

In the given scenario when you receive a payment of $300 one year from now and during the year the interest rate rises, this reduces the present value of your future payment

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3 years ago
Which of the following contracts would not be governed by the UCC? a. a contract for dentures b. a contract for the purchase of
Drupady [299]

Answer:A contract for debentures.

Explanation:UCC( uniform commercial code) is code system which governs commercial activities in the United States of America. It was established in the year 1957,this code has been adopted by all the States,the district of Columbia and all the territories of the United States of America. It is aimed at Ensuring harmony in practice of sales,contracts and other trade and commercial activities with the United States of America.

The contract for debentures are not governed by UCC.

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3 years ago
Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacture
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Answer:Woodmier journal $

1. Date

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Warranty liability Cr. 90,000

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2021

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Narration. Payment of warranty expenditures.

2. No entry require

Explanation:

The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.

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3 years ago
Productivity is declining when: A) the number of hours worked exceeds the number of workers. B) population growth exceeds real G
SOVA2 [1]

Answer: b. When population exceeds real GDP growth

Explanation:

Gross domestic growth(GDP) is the monetary value of all finished goods and services done within in a country over a period of time. When the population of a country exceeds what it produces there would be record in decline in productivity of the country. This is a serious problem as it could lead to other factors as scarcity(having high demand and low supply), it could lead to poverty as there won't be much jobs as production is not commensurate with population.

5 0
3 years ago
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The budget process involves doing all of the following except a. periodically comparing actual results with the goals b. establi
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Answer:

d. dismissing all managers who fail to achieve operational goals specified in the budget

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The budget, no matter how well it's done, It's a forecast.

Price can change without the company being able to intervene, the same goes for consumer demand, foreign currency rates changes, and other variables in the budget.

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