Match the descriptions with their terms:
-The value today of an amount to be paid or received at some date in the future after taking into account current interest rates
A) Non-current liability
B) Present value
C) Warranty
D) Issue price
E) Current liability
F) Borrowing costs
G) Contract interest rate
H) Mortgage
I) Quick ratio
J) Provision

Question

Quizplus · Accepted Answer

The correct term for "The value today of an amount to be paid or received at some date in the future after taking into account current interest rates" is Present value. This concept is used in finance to discount future cash flows to their present value using a discount rate, which reflects current market interest rates and the risk associated with the future cash flows.

Match the Descriptions with Their Terms