Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item
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Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item from List A with the item from List B (by letter) that is most appropriately associated withit.
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List A List B 1. Interest a. First cash flow occurs one period after agreement begins 2. Monetary asset b. The rate at which money will actually grow during a 3. Compound interest 4. Simple interest 5. Annuity year C. First cash flow occurs on the first day of the agreement. d. The amount of money that a dollar will grow to e. Amount of money paid/received in excess of amount borrowed/lent. 6. Present value of Obligation to pay a sum of cash, the amount of which is fixed single amount 7. Annuity due g. Money can be invested today and grow to a larger amount. 8. Future value of a single amount h. No fixed dollar amount attached 9. Ordinary annuity Computed by multiplying an invested amount by the interest rate 10. Effective rate or yield j. Interest calculated on invested amount plus accumulated interest 11. Nonmonetary asset k. A series of equal-sized cash flows 12. Time value of money . Amount of money required today that is equivalent to a given future amount. 13. Monetary liability . Claim to receive a fixed amount of money
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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