8 questions
The formula for calculating future value (FV) is
FV = PV/(1+r)^n
FV = PV/(1+r)*n
FV = PV x (1+r)^n
FV = PV x (1+r)*n
The concept of time value of money is:
The cash flows that occur earlier are more valuable than cash flows that occur later
The cash flows that occur earlier are less valuable than cash flows that occur later
The longer the time cash flows are invested, the more valuable they are in the future
The future value of cash flows are always higher than the present value of the cash flows
Letter of Credit & Guarantee are fund based lending services ?
True
False
If funds are not utilized in the manner so that they generate an income higher than the cost of procuring them, there is no point in running the business.
True
False
Corporate Finance is to address three major financial decision areas namely:
Investment
Financing
Dividend
None of the above
Anything that is purchased with the hope that it will generate income or be more valuable at a future date.
investment
loan
income
expense
The fee for borrowing and using someone else's money.
expense
interest
interest rate
income
Payment received for goods or services, including employment.
interest
dept
credit
income