100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Test Bank for Accounting Principles, 15th Edition by Jerry J. Weygandt, Paul D. Kimmel | Complete Chapters $29.49   Add to cart

Exam (elaborations)

Test Bank for Accounting Principles, 15th Edition by Jerry J. Weygandt, Paul D. Kimmel | Complete Chapters

 21 views  0 purchase
  • Course
  • Accounting Principles
  • Institution
  • Accounting Principles

Test Bank for Accounting Principles, 15th Edition 15e by Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell. Full Chapters test bank are included with answers, Chapter 1 to 27 Plus Appensix G. All chapters includes Multiple Choice Questions, True False, Exercises and Problems with Answers, Short ...

[Show more]

Preview 4 out of 3174  pages

  • June 23, 2024
  • 3174
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
  • Accounting Principles
  • Accounting Principles
avatar-seller
Tutor247
Test Bank for Accounting Principles, 15th Edition by Jerry J. Weygandt, Paul D.
Kimmel

Accounting Principles, 15e (Weygandt)
Appendix G Time Value of Money Complete Chapters ✅
1) Interest is the difference between the amount borrowed and the principal.
Answer: FALSE
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

2) Compound interest is computed on the principal and any interest earned that has not been paid
or received.
Answer: TRUE
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

3) The future value of a single amount is the value at a future date of a given amount invested
now, assuming compound interest.
Answer: TRUE
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

4) When the periodic payments are not equal in each period, the future value can be computed
by using a future value of an annuity table.
Answer: FALSE
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: C
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1




1

,5) The process of determining the present value is referred to as discounting the future amount.
Answer: TRUE
Diff: 1
LO: 2. Compute present values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

6) A higher discount rate produces a higher present value.
Answer: FALSE
Diff: 1
LO: 2. Compute present values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

7) In computing the present value of an annuity, it is not necessary to know the number of
discount periods.
Answer: FALSE
Diff: 1
LO: 2. Compute present values.
Bloom/IFRS: C
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

8) The present value of a long-term note or bond is a function of two variables.
Answer: FALSE
Diff: 1
LO: 2. Compute present values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

9) The present value of an annuity is the value now of a series of future receipts or payments,
discounted assuming compound interest.
Answer: TRUE
Diff: 1
LO: 2. Compute present values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1


2

,10) The decision to make long-term capital investments is best evaluated without recognizing the
time value of money.
Answer: FALSE
Diff: 1
LO: 3. Compute the present value in capital budgeting situations.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

11) In a capital budgeting decision, a positive net present value means the decision to invest
should be accepted.
Answer: TRUE
Diff: 1
LO: 3. Compute the present value in capital budgeting situations.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

12) With a financial calculator, one can solve for any interest rate or for any number of periods
in a time value of money problem.
Answer: TRUE
Diff: 1
LO: 4. Use a financial calculator to solve time value of money problems.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1

13) Compound interest is the return on principal
A) only.
B) for one or more periods.
C) plus interest for two or more periods.
D) for one period.
Answer: C
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1




3

, 14) The factor 1.08160 is taken from the 4% column and 2 periods row in a certain table. From
what table is this factor taken?
A) Future value of 1
B) Future value of an annuity of 1
C) Present value of 1
D) Present value of an annuity of 1
Answer: A
Diff: 2
LO: 1. Compute interest and future values.
Bloom/IFRS: C
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: None
Min.: 1

15) If $40,000 is deposited in a savings account paying interest of 4% compounded annually,
what amount will be in the account at the end of 5 years?
A) $32,878
B) $48,000
C) $48,620
D) $48,666
Answer: D
Explanation: $40,000 × 1.21665 = $48,666
Present value × FVIF (n = 5 periods, i = 4%) = Future value
Diff: 2
LO: 1. Compute interest and future values.
Bloom/IFRS: AP
AACSB/IMA: Analytic/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: None
Min.: 2

16) The future value of 1 factor will always be
A) equal to 1.
B) greater than 1.
C) less than 1.
D) equal to the interest rate.
Answer: B
Diff: 1
LO: 1. Compute interest and future values.
Bloom/IFRS: K
AACSB/IMA: None/Investment Decisions
AICPA: BB: None; FC: Measurement Analysis and Interpretation; PC: Project Management
Min.: 1




4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutor247. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $29.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81113 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$29.49
  • (0)
  Add to cart