tailieunhanh - Lecture Financial accounting (9th Edition): Chapter 15 - Weygandt, Kieso, Kimmel

Appendix G -Time value of money. The following will be discussed in this chapter: Compute interest and future values, compute present values, compute the present value in capital budgeting situations, use a financial calculator to solve time value of money problems. | Accounting in Action Learning Objectives After studying this chapter, you should be able to: [1] Distinguish between simple and compound interest. [2] Solve for future value of a single amount. [3] Solve for future value of an annuity. [4] Identify the variables fundamental to solving present value problems. [5] Solve for present value of a single amount. [6] Solve for present value of an annuity. [7] Compute the present value of notes and bonds. [8] Compute the present values in capital budgeting situations. [9] Use a financial calculator to solve time value of money problems. AppendixG Time Value of Money Would you rather receive $1,000 today or in a year from now? Basic Time Value Concepts Time Value of Money Today! “Interest Factor” Payment for the use of money. Difference between amount borrowed or invested (principal) and amount repaid or collected. Elements involved in financing transaction: Principal (p): Amount borrowed or invested. Interest Rate (i): An annual percentage. Time (n): Number of years or portion of a year that the principal is borrowed or invested. Nature of Interest LO 1 Interest computed on the principal only. Nature of Interest Illustration: Assume you borrow $5,000 for 2 years at a simple interest rate of 12% annually. Calculate the annual interest cost. Interest = p x i x n = $5,000 x .12 x 2 = $1,200 2 FULL YEARS Illustration G-1 Interest computations Simple Interest LO 1 Computes interest on the principal and any interest earned that has not been paid or withdrawn. Most business situations use compound interest. Nature of Interest Compound Interest LO 1 Illustration: Assume that you deposit $1,000 in Bank Two, where it will earn simple interest of 9% per year, and you deposit another $1,000 in Citizens Bank, where it will earn compound interest of 9% per year compounded annually. Also assume that in both cases you will not withdraw any interest until three years from the date of deposit. Nature of Interest - Compound Interest Year 1 . | Accounting in Action Learning Objectives After studying this chapter, you should be able to: [1] Distinguish between simple and compound interest. [2] Solve for future value of a single amount. [3] Solve for future value of an annuity. [4] Identify the variables fundamental to solving present value problems. [5] Solve for present value of a single amount. [6] Solve for present value of an annuity. [7] Compute the present value of notes and bonds. [8] Compute the present values in capital budgeting situations. [9] Use a financial calculator to solve time value of money problems. AppendixG Time Value of Money Would you rather receive $1,000 today or in a year from now? Basic Time Value Concepts Time Value of Money Today! “Interest Factor” Payment for the use of money. Difference between amount borrowed or invested (principal) and amount repaid or collected. Elements involved in financing transaction: Principal (p): Amount borrowed or invested. Interest Rate (i): An annual percentage. .

• Kế toán - Kiểm toán
• Time value of money
• Future value
• Present value
• Financial accounting
• Lecture Financial accounting
• Kế toán tài chính
• Future value of Money
• Present value of Money
• Rates of return amortization
• Time lines show timing of cash flows
• Time line for an ordinary annuity
• The Time Value of Money
• Time and Money
• Financial Calculator
• Interest rate
• Inventory model
• Crashable lead time
• Management of the current assets
• Solution algorithm
• Managerial Accounting
• Lecture Managerial Accounting
• Kế toán quản trị
• Managerial finance
• Lecture Managerial finance
• Rates of return
• Intermediate accounting
• Lecture Intermediate accounting
• Single sum problems
• Present value measurement
• Compound interest
• Finance management
• Fundamentals of finance management
• Time lines
• The power of compound interest
• Savings problem
• The balloon payment
• Stocking and price reduction decisions
• Non instantaneous deteriorating items
• Complex and time consuming
• Decision making processes
• Lecture Money and Banking
• Bài giảng Tiền tệ và Ngân hàng
• Money and Banking
• Future value concepts
• Financial environment
• Financial management
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Engineering economics
• Lecture Engineering economics
• Time value
• Money application
• Determining operating costs
• Calculating annual costs
• Future amounts
• Present values
• Financial instruments
• Business decision
• Business finance
• Business organisation
• Fundamentals of finance
• Lecture Business finance
• Capital market
• Equity securities
• Issues in financial accounting
• Financial statements
• Future values
• Lecture Engineering economy
• Engineering economy
• Bài giảng Kinh tế kỹ thuật
• Computation of simple interest
• Accumulated interest
• Financial transactions