39) If a company's financial issue? ments are not fairly presented, which type of opinion will the auditor not A) qualified B) unqualified C) adverse D) disclaimer 40) Th financial statements. A) True B) False e Management Discussion and Analysis section of the annual report is a part of the audited 1 What is the term that describes the value today of a cash flow or series of cash flows to be receive or paid in the future? A) present value B) compound value C) discount value D) temporal value 42) Simple interest on a $25,000, 8%, 18-month note is- A) $1,200 B) $2,000 C) $2,500 D) $3,000 43) 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. 44) You decide to deposit $5,000 at a local bank for three years at a 8% rate of interest compounded quarterly. The future value of your investment is most nearly equal to A) $6,200 B) $6,340 C) $6,430 D) $6,800 45) Como Company borrowed $4,550 from its bank. Como will repay $7,000 in five years. What is the approximate interest rate that Como will incur on this loan, assuming annual compounding? A) 9% B)11% C) 13% D) 65%