ch06 - CHAPTER 6 ACCOUNTING AND THE TIME VALUE OF MONEY...

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CHAPTER 6 ACCOUNTING AND THE TIME VALUE OF MONEY IFRS questions are available at the end of this chapter. TRUE-FALSE —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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Test 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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ch06 - CHAPTER 6 ACCOUNTING AND THE TIME VALUE OF MONEY...

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