Franklyn A Plus Pass
Test Bank for Financial & Managerial
Accounting ISE| 2023 20th Edition by
Mark S. Bettner Jan Williams
All Chapters 1-26 With Expert Verified Q&As
All Answers at the Back of Each Chapter
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, Franklyn A Plus Pass
Appendix B
1) Future value is the amount that must be invested today at a specific interest rate to receive a particular
amount at some future date.
⊚ true
⊚ false
2) The present value of an ordinary annuity is the amount that must be invested today at a specific interest
rate to in order to receive a particular amount at the end of a specified number of future periods.
⊚ true
⊚ false
3) The future value of an investment gradually increases toward its present value amount.
⊚ true
⊚ false
4) Compound interest assumes that the interest earned on a particular investment is reinvested.
⊚ true
⊚ false
Fr
an
5) Discounting a future value amount will determine its present value amount.
⊚ true
kl
⊚ false
yn
e
6) The lower the discount rate of an investment, the lower the present value of the investment.
A
⊚ true
pl
⊚ false
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, Franklyn A Plus Pass
7) Annuities provide a series of cash flows to investors at regular intervals for a specified period of time.
⊚ true
⊚ false
8) The market price of a bond is equal to the discounted present value of its future cash flows.
⊚ true
⊚ false
9) An ordinary annuity is the discounted present value of a series of cash flows made at the beginning of
each of a specified number of periods.
⊚ true
⊚ false
10) Interest rate percentages can be expressed in a variety of ways, including monthly, quarterly,
semiannually, and annually.
⊚ true
⊚ false
Fr
11) The difference between a present value and a related future value amount depends on (1) the discount
rate and (2) the length of time over which the present value accumulates interest.
an
⊚ true
kl
⊚ false
yn
e
12) The liability for post-retirement benefits is reported at the discounted present value of anticipated
future cash outlays to retired employees in the form of pensions, health insurance premiums, etc.
A
⊚ true
pl
⊚ false
us
Pa
Page | 3
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, Franklyn A Plus Pass
13) As discount rates used to value investments increase, the present values of those investments
decreases.
⊚ true
⊚ false
14) Present values of future cash flows can only be calculated through the application of complex
formulas.
⊚ true
⊚ false
15) The future value of an investment’s present value today can be determined by multiplying its present
value by the appropriate factor obtained from a future value table.
⊚ true
⊚ false
16) The future value of an ordinary annuity can be determined by multiplying the periodic annuity
payment by the appropriate factor obtained from a future value of an ordinary annuity table.
⊚ true
Fr
⊚ false
an
17) The present value of an investment that promises to pay a single lump-sum amount in the future can
kl
be calculated by multiplying the future lump-sum amount by the appropriate factor obtained from a
yn
present value of $1 table.
⊚ true
e
⊚ false
A
pl
us
Pa
Page | 4
ss
Test Bank for Financial & Managerial
Accounting ISE| 2023 20th Edition by
Mark S. Bettner Jan Williams
All Chapters 1-26 With Expert Verified Q&As
All Answers at the Back of Each Chapter
Fr
an
kl
yn
e
A
pl
us
Pa
Page | 1
ss
, Franklyn A Plus Pass
Appendix B
1) Future value is the amount that must be invested today at a specific interest rate to receive a particular
amount at some future date.
⊚ true
⊚ false
2) The present value of an ordinary annuity is the amount that must be invested today at a specific interest
rate to in order to receive a particular amount at the end of a specified number of future periods.
⊚ true
⊚ false
3) The future value of an investment gradually increases toward its present value amount.
⊚ true
⊚ false
4) Compound interest assumes that the interest earned on a particular investment is reinvested.
⊚ true
⊚ false
Fr
an
5) Discounting a future value amount will determine its present value amount.
⊚ true
kl
⊚ false
yn
e
6) The lower the discount rate of an investment, the lower the present value of the investment.
A
⊚ true
pl
⊚ false
us
Pa
Page | 2
ss
, Franklyn A Plus Pass
7) Annuities provide a series of cash flows to investors at regular intervals for a specified period of time.
⊚ true
⊚ false
8) The market price of a bond is equal to the discounted present value of its future cash flows.
⊚ true
⊚ false
9) An ordinary annuity is the discounted present value of a series of cash flows made at the beginning of
each of a specified number of periods.
⊚ true
⊚ false
10) Interest rate percentages can be expressed in a variety of ways, including monthly, quarterly,
semiannually, and annually.
⊚ true
⊚ false
Fr
11) The difference between a present value and a related future value amount depends on (1) the discount
rate and (2) the length of time over which the present value accumulates interest.
an
⊚ true
kl
⊚ false
yn
e
12) The liability for post-retirement benefits is reported at the discounted present value of anticipated
future cash outlays to retired employees in the form of pensions, health insurance premiums, etc.
A
⊚ true
pl
⊚ false
us
Pa
Page | 3
ss
, Franklyn A Plus Pass
13) As discount rates used to value investments increase, the present values of those investments
decreases.
⊚ true
⊚ false
14) Present values of future cash flows can only be calculated through the application of complex
formulas.
⊚ true
⊚ false
15) The future value of an investment’s present value today can be determined by multiplying its present
value by the appropriate factor obtained from a future value table.
⊚ true
⊚ false
16) The future value of an ordinary annuity can be determined by multiplying the periodic annuity
payment by the appropriate factor obtained from a future value of an ordinary annuity table.
⊚ true
Fr
⊚ false
an
17) The present value of an investment that promises to pay a single lump-sum amount in the future can
kl
be calculated by multiplying the future lump-sum amount by the appropriate factor obtained from a
yn
present value of $1 table.
⊚ true
e
⊚ false
A
pl
us
Pa
Page | 4
ss
