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If an Organization Has an Obligation to Pay $5,000 to a Supplier

Question 17

Multiple Choice

If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation:


A) is less than $5,000.
B) is $5,000.
C) is more than $5,000.
D) could be calculated using an annuity factor from the present value tables.

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