Answer: True
Explanation:
The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.
The $3,700 (PV: $25,166.26) cash flow stream has the higher present value than the $5,500 (PV: 23,168) cash flow stream if the discount rate is 6 percent. The $5,500 (PV: 15.750.02) cash flow stream has the higher present value than the $3,700 (PV: $14,009.25) cash flow stream if the discount rate is 22 percent.
Answer: The statement is False.
Explanation: Compound interest as the name suggests is the interest compounded over time. In other words is can be defined as the interest we receive from banks on the interest already earned on our principal amount. To make it simple, let us say we have deposited $100 in a bank at 10% interest.
Then in year 1 our interest amounts to $10.
In year 2, the interest will be computed on $100 + $10 , that is the previous principal amount and the interest earned in year 1. So in this way, we get interest on interest already earned.
Thus, the above statement is false.
The common errors that leads to unbalanced account and are the easiest to resolve includes the <em>error of </em><em>Omission, Commission</em>. <em>Original Entry and Duplication</em><em>.</em>
In accounting, there are different type of error that could result to the unbalanced account, that is, leaving the Trial balance or Balance sheet unbalanced.
Generally, the recognized type of errors in accounting includes:
- <em>Error of Original Entry</em>
- <em>Error of Duplication</em>
- <em>Error of Omission</em>
- <em>Error of Entry Reversal</em>
- <em>Error of Principle </em>
- <em>Error of Commission</em>
- <em>Transposition Errors</em>
- <em>Rounding Errors </em><em>etc</em>
In conclusion, the common errors that leads to unbalanced account and are the easiest to resolve includes the <em>error of </em><em>Omission, Commission</em>. <em>Original Entry and Duplication</em><em> </em>because they are easy to correct.
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