Which one of the following statements is correct concerning the time value of money?
A) The future value of $1 at the end of two years is equal to $1 plus the first year's interest times 1 plus the annual interest rate.
B) As the interest rate increases for any given year, the future value interest factor will decrease.
C) The future value of $1 decreases with the passage of time.
D) The future value interest factor is equal to zero if the interest rate is zero.
Answer: A
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Which of the following statements is true of sell-or-process-further decisions in joint costing?
A) Joint costs incurred before the splitoff point are relevant in deciding whether to process the product further. B) All separable costs in joint-cost allocations are incremental costs. C) Separable costs incurred before the splitoff point are irrelevant in deciding whether to process the product further. D) Costs that differ between the alternatives of selling products or processing further are relevant.
Zero, Inc agreed to build Millie a storage building for $8,000 . After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500 . When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500,
a. Zero will win because there was consideration for the additional $1,500. b. Zero will win because Millie had a pre-existing duty to pay any additional amounts. c. Zero will lose because there was no legal consideration to support the additional $1,500. d. Zero will lose because the UCC does not require consideration to modify an existing contract.