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CHAPTER 6
ACCOUNTING AND THE TIME VALUE OF MONEY
MULTIPLE CHOICE
—Conceptual
Answer
No.
Description
d
1.
Definition of present value.
c
2.
Understanding compound interest tables.
a
3.
Identification of correct compound interest table.
d
4.
Identification of correct compound interest table.
c
5.
Identification of correct compound interest table.
c
6.
Identification of correct compound interest table.
b
7.
Identification of correct compound interest table.
d
8.
Identification of number of compounding periods.
a
9.
Adjust the interest rate for time periods.
c
10.
Identification of present value of 1 table.
c
11.
Determine present value of an ordinary annuity.
b
12.
Identification of a future value of an ordinary annuity of 1.
a
13.
Appropriate use of an annuity due table.
c
14.
Determine the timing of rents of an annuity due.
b
15.
Present value of an ordinary annuity and an annuity due.
b
16.
Factors of an ordinary annuity and an annuity due.
b
17.
Difference between an ordinary annuity and an annuity due.
d
18.
Definition of deferred annuities.
MULTIPLE CHOICE
—Computational
Answer
No.
Description
c
19.
Calculate present value of a future amount.
b
20.
Calculate a future value.
a
21.
Calculate a future value of an annuity due.
b
22.
Calculate a future value.
c
23.
Calculate a future value.
c
24.
Calculate present value of a future amount.
d
25.
Calculate present value of a future amount.
a
26.
Calculate present value of an annuity due.
d
27.
Interest compounded quarterly.
d
28.
Calculate the future value of 1.
a
29.
Calculate future value of an annuity due.
a
30.
Calculate present value of an ordinary annuity.
b
31.
Calculate present value of an annuity due.
a
32.
Calculate future value of an ordinary annuity.
d
33.
Calculate future value of an annuity due.
c
34.
Calculate annual deposit for annuity due.
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View Full DocumentTest Bank for Intermediate Accounting, Eleventh Edition
MULTIPLE CHOICE—Computational
(cont.)
Answer
No.
Description
d
35.
Calculate cost of machine purchased on installment.
b
36.
Calculate cost of machine purchased on installment.
c
37.
Calculate cost of machine purchased on installment.
a
38.
Calculate the annual rents of leased equipment.
b
39.
Calculate present value of an investment in equipment.
b
40.
Calculate proceeds from issuance of bonds.
b
41.
Calculate proceeds from issuance of bonds.
MULTIPLE CHOICE
—CPA Adapted
Answer
No.
Description
d
42.
Identification of correct compound interest table.
a
43.
Appropriate use of an ordinary annuity table.
b
44.
Calculate annual deposit of annuity due.
a
45.
Calculate the present value of a note.
a
46.
Calculate the present value of a note.
c
47.
Calculate interest revenue of a noninterestbearing note.
d
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 Spring '09
 DR.RAMASWAMY
 Accounting

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