Test Bank for Financial and Managerial Accounting, 5th Edition By Jerry J. Weygandt, Paul D. Kimmel | Complete Guide A+
Solution Manual for Financial And Managerial Accounting 5th Edition by Weygandt, Kimmel, Mitchel, Verified Chapters 1 - 25, Complete Newest Version
All for this textbook (3)
Written for
Financial and Managerial Accounting, 5th Edition b
All documents for this subject (1)
Seller
Follow
ASolution
Reviews received
Content preview
Created by: A Solution
Test Bank for Financial and Managerial
Accounting, 5th Edition by Jerry J. Weygandt,
Paul D. Kimmel A+
Financial and Managerial Accounting, 5e (Weygandt)
Appendix G Time Value of Money
Interest is the difference between the amount borrowed and the principal. Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
Compound interest is computed on the principal and any interest earned that has not been paid or
received.
Answer: TRUE Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
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
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
A+ Page 1
,Created by: A Solution
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
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
The process of determining the present value is referred to as discounting the future amount.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
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
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
A+ Page 2
,Created by: A Solution
The present value of a long-term note or bond is a function of two variables. Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Investment Decision
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
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
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Decision Analysis
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
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
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Decision Analysis
AICPA: BB: Resource Management; FC: Measurement; PC: Project Management Minutes: 1
Compound interest is the return on principal
only.
for one or more periods.
plus interest for two or more periods.
for one period.
Answer: C
Diff: 1
LO: 1
The factor 1.0609 is taken from the 3% column and 2 periods row in a certain table. From what
table is this factor taken?
Future value of 1
Future value of an annuity of 1
Present value of 1
Present value of an annuity of 1 Answer: A
Diff: 2
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Analytic / Investment Decisions
AICPA: BB: Resource Management; FC: Measurement; PC: Problem Solving/Decision Making
Minutes: 1
If $40,000 is put in a savings account paying interest of 4% compounded annually, what amount
will be in the account at the end of five years?
A) $32,878
B) $48,000
C) $48,620
D) $48,666
Answer: D
Explanation: 1.21665 × $40,000 = $48,666 (FVIF n= 5, i = 4% × PV) = FV
Diff: 2
LO: 1
Bloom / IFRS: AP
AACSB/ IMA: Analytic / Quantitative Methods
AICPA: BB: Resource Management; FC: Measurement; PC: Problem Solving/Decision Making
Minutes: 2
A+ Page 4
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 ASolution. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
