Financial Management - Study Mode

[#891] Discounted cash flow analysis is also classified as
Correct Answer

(B) time value of money

Explanation

Solution: Discounted cash flow analysis is also classified as time value of money. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

[#892] Prices of bonds will be decreased if an interest rates
Correct Answer

(A) rises

Explanation

Solution: Prices of bonds will be decreased if an interest rates rises. An existing bond's price or present value moves in the opposite direction of the change in market interest rates: Bond prices will go up when interest rates go down, and Bond prices will go down when interest rates go up.

[#893] Right side of balance sheet states the
Correct Answer

(C) assets

Explanation

Solution: Right side of balance sheet states the assets. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.

[#894] Wages and salaries of employees which company owns in this accounts are called
Correct Answer

(C) Both A and B

Explanation

Solution: Wages and salaries of employees which company owns in this accounts are called accrued expenses and accruals accounts.

[#895] Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, 'N' will be
Correct Answer

(C) 15.7473 years