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app_c - APPENDIX C TIME VALUE OF MONEY SUMMARY OF QUESTIONS...

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APPENDIX C TIME VALUE OF MONEY SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 5. 2 K 9. 4 K 13. 6 K 17. 7 K 2. 1 K 6. 2 K 10. 4 K 14. 6 K 18. 7 C 3. 1 K 7. 3 K 11. 5 K 15. 6 K 19. 7 K 4. 1 K 8. 3 K 12. 5 K 16. 6 K 20. 7 K Multiple Choice Questions 21. 1 K 30. 3 C 39. 5 AP 48. 5 AP 57. 6 AP 22. 2 K 31. 3 AP 40. 5 K 49. 5 AP 58. 7 AP 23. 2 AP 32. 3 K 41. 5 AP 50. 5 AP 59. 7 AP 24. 2 K 33. 4 K 42. 5 AP 51. 5 AP 60. 7 K 25. 2 K 34. 4 K 43. 5 AP 52. 6 AP 61. 7 K 26. 2 AP 35. 4 K 44. 5 C 53. 6 K 62. 7 K 27. 3 AP 36. 5 AP 45. 5 AP 54. 7 AP 63. 7 K 28. 3 K 37. 5 AP 46. 5 AP 55. 6 AP 64. 7 AP 29. 3 AP 38. 5 AP 47. 5 AP 56. 6 AP Brief Exercises 65. 2 AP 68. 3 AP 71. 5 AP 74. 6 AP 76. 7 AP 66. 2 AP 69. 3 AP 72. 5 AP 75. 6 AP 77. 7 AP 67. 2,3 AP 70. 5 AP 73. 5 AP Completion Statements 78. 1 K 80. 3 K 82. 4 K 84. 6 K 85. 7 K 79. 2 K 81. 3 K 83. 5 K Matching 86. 1-6 K
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Test Bank for Financial Accounting: Tools for Business Decision Making, Fourth Edition C - 2 SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE S.O. 1 S.O. 2 S.O. 3 S.O. 4 S.O. 5 Item Type Item Type Item Type Item Type Item Type 1. TF 5. TF 7. TF 9. TF 11. TF 2. TF 6. TF 8. TF 10. TF 12. TF 3. TF 22. MC 27. MC 33. MC 37. MC 4 TF 23. MC 28. MC 34. MC 38. MC 21 MC 24. MC 29. MC 35. MC 39. MC 78. C 25. MC 30. MC 36. MC 40. MC 26. MC 31. MC 82. C 41. MC 65. Be 32. MC 42. MC 66. Be 67. Be 43. MC 67. Be 68. Be 44. MC 79. C 69. Be 45. MC 80. C 46. MC 81. C 47. MC S.O. 5 (cont.) S.O. 6 S.O. 7 Item Type Item Type Item Type 48. MC 13. TF 17. TF 49. MC 14. TF 18. TF 50. MC 15. TF 19. TF 51. MC 16. TF 20. TF 70. Be 52. MC 58. MC 71. Be 53. MC 59. MC 72. Be 54. MC 60. MC 73. Be 55. MC 61. MC 83. C 56. MC 62. MC 57. MC 63. MC 74. Be 64. MC 75. Be 76. Be 77. Be 85. C Note: TF = True-False C = Completion MC = Multiple Choice Be = Brief Exercise The Appendix also contains one set of five Matching questions.
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Time Value of Money C - 3 CHAPTER STUDY OBJECTIVES 1. Distinguish between simple and compound interest. Simple interest is computed on the principal only. Compound interest is computed on the principal and any interest earned that has not been withdrawn. 2. Solve for future value of a single amount. Prepare a time diagram of the problem. Identify the principal amount, the number of compounding periods, and the interest rate. Using the future value of 1 table, multiply the principal amount by the future value factor specified at the intersection of the number of periods and the interest rate. 3. Solve for future value of an annuity. Prepare a time diagram of the problem. Identify the amount of the periodic payments, the number of compounding periods, and the interest rate. Using the future value of an annuity of 1 table, multiply the amount of the payments by the future value factor specified at the intersection of the number of periods and interest rate. 4. Identify the variables fundamental to solving present value problems. The following three variables are fundamental to solving present value problems: (1) the future amount, (2) the number of periods, and (3) the interest rate (the discount rate).
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