100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Test Bank Financial & Managerial Accounting, 20th Edition by Jan Williams, Mark Bettner, All Chapters | Complete Guide A+ $19.99   Add to cart

Exam (elaborations)

Test Bank Financial & Managerial Accounting, 20th Edition by Jan Williams, Mark Bettner, All Chapters | Complete Guide A+

 6 views  0 purchase
  • Course
  • Financial & Managerial Accounting, 20th Edition
  • Institution
  • Financial & Managerial Accounting, 20th Edition

Test Bank Financial & Managerial Accounting, 20th Edition by Jan Williams, Mark Bettner, All Chapters | Complete Guide A+

Preview 4 out of 1082  pages

  • September 20, 2024
  • 1082
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Financial & Managerial Accounting, 20th Edition
  • Financial & Managerial Accounting, 20th Edition
avatar-seller
Tutorguru
Test Bank for Financial & Managerial Accounting, 20th Edition by Jan Williams
uytrew


Answers Included ✅
Appendix B
1) Future value is the amount that must be invested today at a specific interest rate to receive a
particular amount at some future date.
⊚ true
⊚ false
TU
2) The present value of an ordinary annuity is the amount that must be invested today at a
specific interest rate to in order to receive a particular amount at the end of a specified
number of future periods.
⊚ true
⊚ false
TO

3) The future value of an investment gradually increases toward its present value amount.
⊚ true
⊚ false
R
4) Compound interest assumes that the interest earned on a particular investment is reinvested.
⊚ true
G
⊚ false
U
5) Discounting a future value amount will determine its present value amount.
⊚ true
⊚ false
R

6) The lower the discount rate of an investment, the lower the present value of the investment.
U
⊚ true
⊚ false



7) Annuities provide a series of cash flows to investors at regular intervals for a specified period
of time.
⊚ true
⊚ false




uytrew

, uytrew


8) The market price of a bond is equal to the discounted present value of its future cash flows.
⊚ true
⊚ false



9) An ordinary annuity is the discounted present value of a series of cash flows made at the
beginning of each of a specified number of periods.
⊚ true
⊚ false
TU
10) Interest rate percentages can be expressed in a variety of ways, including monthly, quarterly,
semiannually, and annually.
⊚ true
⊚ false
TO

11) The difference between a present value and a related future value amount depends on (1) the
discount rate and (2) the length of time over which the present value accumulates interest.
⊚ true
R
⊚ false
G
12) The liability for post-retirement benefits is reported at the discounted present value of
anticipated future cash outlays to retired employees in the form of pensions, health insurance
premiums, etc.
⊚ true
U
⊚ false
R
13) As discount rates used to value investments increase, the present values of those investments
decreases.
U
⊚ true
⊚ false




uytrew

, uytrew


14) Present values of future cash flows can only be calculated through the application of complex
formulas.
⊚ true
⊚ false



15) The future value of an investment’s present value today can be determined by multiplying its
present value by the appropriate factor obtained from a future value table.
⊚ true
TU
⊚ false



16) The future value of an ordinary annuity can be determined by multiplying the periodic
annuity payment by the appropriate factor obtained from a future value of an ordinary
annuity table.
TO
⊚ true
⊚ false



17) The present value of an investment that promises to pay a single lump-sum amount in the
R
future can be calculated by multiplying the future lump-sum amount by the appropriate factor
obtained from a present value of $1 table.
⊚ true
G
⊚ false
U
18) The present value of an ordinary annuity is calculated by multiplying the annuity’s periodic
cash payments by the appropriate factor obtained from a future value of an ordinary annuity
table.
R
⊚ true
⊚ false
U
19) If Larraine invested $33,000 at 6% on her 20th birthday, how much would Larraine have on
her 40th birthday?
A) $105,831.00
B) $100,803.28
C) $121,824.94
D) $131,903.58




uytrew

, uytrew


20) If Larraine invested $24,000 at 5% on her 20th birthday, how much would Larraine have on
her 40th birthday?
A) $63,672.00
B) $73,293.60
C) $79,358.28
D) $60,646.83



21) If Jonathan invests $41,000 today for 10 years and it grows to $165,886, what rate of interest
TU
has Jonathan received?
A) 10%
B) 30%
C) 15%
D) 20%
TO
22) If Jonathan invests $44,000 today for 6 years and it grows to $69,828, what rate of interest
has Jonathan received?
A) 12%
B) 6%
R
C) 8%
D) 16%
G
23) How much must Rashad invest today in order to have $25,200 in 9 years assuming 15%
interest compounded annually?
U
A) $7,156.80
B) $16,800.00
C) $23,066.24
R
D) $17,842.00
U
24) How much must Rashad invest today in order to have $15,000 in 8 years assuming 12%
interest compounded annually?
A) $6,060.00
B) $10,000.00
C) $19,531.25
D) $11.520.00




uytrew

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 Tutorguru. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $19.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80202 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
$19.99
  • (0)
  Add to cart