Which of the following statements is true?
A) The process of accumulating interest on interest is referred to as discounting.
B) The higher the discount rate, the higher the present value.
C) If interest is 12% compounded annually, $1,200 due one year from today is equivalent to $1,000 today.
D) If interest is 10% compounded annually, $1,100 due one year from today is equivalent to $1,000 today.
Answer: D
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Unemployment benefits are usually available in which of the following situations?
A) Worker voluntarily quits to find a better job B) Worker fired for theft C) Worker is laid-off when employer becomes bankrupt D) Worker is participating in a strike
Edmund, who is auditing the books of Windgrove Co, becomes aware of information indicating an illegal act within the company. Edmund must:
a. determine whether an illegal act occurred and, if it did, the possible effect on Windgrove's financial statements. b. notify the SEC immediately so it can conduct an investigation. c. resign immediately to avoid criminal liability. d. notify local law enforcement and remove himself from any association with the company.