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

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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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Test 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 noninterest-bearing note. d
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## This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.

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

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