100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Financial Accounting Tools for Business Decision Making, 7th Edition By Kimmel -Test Bank $24.79   Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting Test Bank
  4.  
  5. Accounting Test Bank
  6.  
  7. Accounting Test Bank

Exam (elaborations)

Financial Accounting Tools for Business Decision Making, 7th Edition By Kimmel -Test Bank
 7 views  0 purchase
  • Course
  • Accounting Test Bank
  • Institution
  • Accounting Test Bank

CHAPTER 2 A FURTHER LOOK AT FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 C 23. 5 K 34. 7 K 45. 7 K 2. 1 K 13. 3 C 24. 5 K 35. 7 C 46. 7 K 3. 1 K 14. 3 K 25. 5...

[Show more]

Preview 4 out of 1235  pages

Document information

  • August 19, 2023
  • 1235
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • complete test bank
  • financial accounting tools for business decision m

Written for

  • Accounting Test Bank
  • Accounting Test Bank
  • Accounting Test Bank
All documents for this subject (74)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

, APPENDIX D

TIME VALUE OF MONEY
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
True-False Statements
1. 1 K 5. 2 K 9. 4 K 13. 6 K 17. 7 K
2. 1 K 6. 2 K 10. 4 K 14. 6 K 18. 7 C
3. 1 K 7. 3 K 11. 5 K 15. 6 K 19. 7 K
4. 1 K 8. 3 K 12. 5 K 16. 6 K 20. 7 K
Multiple Choice Questions
21. 1 K 33. 3 AP 45. 5 AP 57. 5 AP 69. 6 AP
22. 1 K 34. 3 AP 46. 5 AP 58. 5 AP 70. 7 AP
23. 1 AP 35. 3 K 47. 5 K 59. 5 AP 71. 7 AP
24. 1 C 36. 3 AP 48. 5 AP 60. 5 AP 72. 7 K
25. 2 AP 37. 3 C 49. 5 AP 61. 6 AP 73. 7 K
26. 2 AP 38. 3 AP 50. 5 AP 62. 6 AP 74. 7 K
27. 2,3 AP 39. 3 K 51. 5 C 63. 6 AP 75. 7 K
28. 2 K 40. 4 K 52. 5 AP 64. 6 AP 76. 7 AP
29. 2 AP 41. 4 K 53. 5 AP 65. 6 K 77. 7 AP
30. 2 K 42. 4 K 54. 5 AP 66. 7 AP 78. 7 AP
31. 2 K 43. 5 AP 55. 5 AP 67. 6 AP 79. 7 AP
32. 2 AP 44. 5 AP 56. 5 AP 68. 6 AP
Brief Exercises
80. 2 AP 84. 3 AP 88. 5 AP 92. 6,7 AP 96. 7 AP
81. 2 AP 85. 3 AP 89. 5 AP 93. 6,7 AP 97. 7 AP
82. 2,3 AP 86. 5 AP 90. 6 AP 94. 7 AP
83. 2,3 AP 87. 5 AP 91. 6 AP 95. 7 AP
Completion Statements
98. 1 K 100. 3 K 102. 4 K 104. 6 K
99. 2 K 101. 3 K 103. 5 K 105. 7 K
Matching
106. 1-6 K

SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE
Learning Objective 1
Item Type Item Type Item Type Item Type Item Type Item Type
1. TF 3. TF 21. MC 23. MC 98. C
2. TF 4. TF 22. MC 24. MC
Learning Objective 2
5. TF 26. MC 29. MC 32. MC 82. Be 99. C
6. TF 27. MC 30. MC 80. Be 83. Be
25. MC 28. MC 31. MC 81. Be
Learning Objective 3
7. TF 33. MC 36. MC 39. MC 84. Be 101. C
8. TF 34. MC 37. MC 82. Be 85. Be
27. MC 35. MC 38. MC 83. Be 100. C
FOR INSTRUCTOR USE ONLY

,D-2 Test Bank for Financial Accounting: Tools for Business Decision Making, Seventh Edition



Learning Objective 4
Item Type Item Type Item Type Item Type Item Type Item Type
9. TF 10. TF 40. MC 41. MC 42. MC 102. C
Learning Objective 5
11. TF 46. MC 51. MC 56. MC 86. Be
12. TF 47. MC 52. MC 57. MC 87. Be
43. MC 48. MC 53. MC 58. MC 88. Be
44. MC 49. MC 54. MC 59. MC 89. Be
45. MC 50. MC 55. MC 60. MC 103. C
Learning Objective 6
13. TF 16. TF 63. MC 66. MC 69. MC 92. Be
14. TF 61. MC 64. MC 67. MC 90. Be 93. Be
15. TF 62. MC 65. MC 68. MC 91. Be
Learning Objective 7
17. TF 70. MC 74. MC 78. MC 96. Be
18. TF 71. MC 75. MC 79. MC 97. Be
19. TF 72. MC 76. MC 94. Be 105. C
20. TF 73. MC 77. MC 95. Be

Note: TF = True-False C = Completion
MC = Multiple Choice Ex = Exercise
Ma = Matching

CHAPTER LEARNING OBJECTIVES
1. Distinguish between simple and compound interest. Simple interest is computed on the
principal only while compound interest is computed on the principal and any interest earned
that has not been withdrawn.
2. Solve for future value of a single amount. Prepare a time diagram of the problem. Identify
the principal amount, the number of compounding periods, and the interest rate. Using the
future value of 1 table, multiply the principal amount by the future value factor specified at the
intersection of the number of periods and the interest rate.
3. Solve for future value of an annuity. Prepare a time diagram of the problem. Identify the
amount of the periodic payments, the number of compounding periods, and the interest rate.
Using the future value of an annuity of 1 table, multiply the amount of the payments by the
future value factor specified at the intersection of the number of periods and the interest rate.
4. Identify the variables fundamental to solving present value problems. The following
three variables are fundamental to solving present value problems: (1) the future amount, (2)
the number of periods, and (3) the interest rate (the discount rate).
5. Solve for present value of a single amount. Prepare a time diagram of the problem.
Identify the future amount, the number of discounting periods, and the discount (interest) rate.
Using the present value of a single amount table, multiply the future amount by the present
value factor specified at the intersection of the number of periods and the discount rate.

FOR INSTRUCTOR USE ONLY

, Time Value of Money D-3

6. Solve for present value of an annuity. Prepare a time diagram of the problem. Identify the
amount of future periodic receipts or payment (annuities), the number of discounting periods,
and the discount (interest) rate. Using the present value of an annuity of 1 table, multiply the
amount of the annuity by the present value factor specified at the intersection of the number
of periods and the interest rate.
7. Compute the present value of notes and bonds. Determine the present value of the
principal amount: Multiply the principal amount (a single future amount) by the present value
factor (from the present value of 1 table) intersecting at the number of periods (number of
interest payments) and the discount rate. Determine the present value of the series of interest
payments: Multiply the amount of the interest payment by the present value factor (from the
present value of an annuity of 1 table) intersecting at the number of periods (number of
interest payments) and the discount rate. Add the present value of the principal amount to the
present value of the interest payments to arrive at the present value of the note or bond.



TRUE-FALSE STATEMENTS
1. Interest is the difference between the amount borrowed and the principal.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions

2. Compound interest is computed on the principal and any interest earned that has not
been withdrawn.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions

3. The amount of interest involved in any financing transaction is based on two elements,
principal and interest rate.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions

4. Compound interest uses the accumulated balance—principal plus interest to date—at
each year-end to compute interest in the succeeding year.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions

5. The formula for the future value of a single amount is p × (1 + i)/n.
Ans: F, LO: 2, Bloom: K, Difficulty: Medium, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC:
None, IMA: Investment Decisions

6. The future value of a single amount is the value at a future date of a given amount
invested assuming compound interest.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions

7. When the periodic payments are not equal in each period, the future value can be
computed by using a future value of an annuity of 1 table.
Ans: F, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,
IMA: Investment Decisions




FOR INSTRUCTOR USE ONLY

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 ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $24.79. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78252 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
$24.79
  • (0)
  Add to cart