CHAPTER 6
ACCOUNTING AND THE TIME VALUE OF MONEY
IFRS questions are available at the end of this chapter.
TRUEFALSE
—Conceptual
Answer
No.
Description
F
1.
Time value of money.
T
2.
Definition of interest expense.
F
3.
Simple interest.
T
4.
Compound interest.
T
5.
Compound interest.
F
6.
Future value of an ordinary annuity.
F
7.
Present value of an annuity due.
T
8.
Compounding period interest rate.
T
9.
Definition of present value.
T
10.
Future value of a single sum.
F
11.
Determining present value.
F
12.
Present value of a single sum.
F
13.
Annuity due and interest.
T
14.
Annuity due and ordinary annuity.
T
15.
Annuity due and ordinary annuity.
T
16.
Number of compounding periods.
F
17.
Future value of an annuity due factor.
T
18.
Present value of an ordinary annuity.
F
19.
Future value of a deferred annuity.
T
20.
Determining present value of bonds.
MULTIPLE CHOICE
—Conceptual
Answer
No.
Description
a
21.
Appropriate use of an annuity due table.
d
22.
Time value of money.
b
23.
Present value situations.
a
24.
Definition of interest.
c
25.
Interest variables.
d
26.
Identification of compounding approach.
b
27.
Future value factor.
b
28.
Understanding compound interest tables.
a
29.
Identification of correct compound interest table.
d
30.
Identification of correct compound interest table.
c
31.
Identification of correct compound interest table.
c
32.
Identification of correct compound interest table.
b
33.
Identification of correct compound interest table.
c
34.
Identification of present value of 1 table.
c
S
35.
Identification of correct compound interest table.
a
S
36.
Identification of correct compound interest table.
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View Full DocumentTest Bank for Intermediate Accounting, Thirteenth Edition
6  2
MULTIPLE CHOICE
—Conceptual
(cont.)
Answer
No.
Description
a
S
37.
Present value of an annuity due table.
c
P
38.
Definition of an annuity due.
a
P
39.
Identification of compound interest concept.
d
P
40.
Identification of compound interest concept.
d
41.
Identification of number of compounding periods.
a
42.
Adjust the interest rate for time periods.
d
43.
Definition of present value.
c
P
44.
Compound interest concepts.
a
45.
Difference between ordinary annuity and annuity due.
c
46.
Future value of 1 and present value of 1 relationship.
b
47.
Identify future value of 1 concept.
d
48.
Determine best bonus option
d
49.
Identify future value of an ordinary annuity
b
50.
Identify future value of an ordinary annuity
c
P
51.
Future value of an annuity due factor.
c
52.
Determine the timing of rents of an annuity due.
b
53.
Factors of an ordinary annuity and an annuity due.
c
54.
Determine present value of an ordinary annuity.
b
55.
Identification of a future value of an ordinary annuity of 1.
b
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 Spring '10
 BarryMishra
 Time Value Of Money, MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC, MC MC MC MC MC MC MC MC MC MC MC MC MC NC MC MC MC MC MC MC

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