12. Present value is not A) The value now of a future amount B) The amount that must be invested now to produce a known future value. C) Always smaller than the future value. D) The sum of a series of payments. 13. Mordica Company will receive $400,000 in 7 years. If the appropriate interest rate is 10%, the present value of the $400,000 receipt is A) $204,000. B) $205,264. C) $604,000. D) $779,488. 14. At the end of two years, what will be the balance in a savings account paying 6% compounded annually if $25,000 is deposited today? The future value of one at 6% for period is 1.06. A) $25,000 B) $26,500 C) $28,000 D) $28,090 one 15. Which of the following is not considered cash for financial reporting purposes? A) Petty cash funds and change funds B) Money orders, certified checks, and personal checks C) Coin, currency, and available funds D) Postdated cheeks and I. O. Us 16. In which account are post-dated checks received classified? A) Receivables. B) Prepaid expenses. C) Cash. D) Payables. 17. What is a compensating balance? A) Savings account balances. B) Margin accounts held with brokers C) Temporary investments serving D) Minimum deposits required to be maintained in connection with a borrowing collateral for outstanding loans. as arrangement