Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE D-5

Purpose: (L.O. 1 thru 7) This exercise will quiz you about terminology used in this appendix.

At list of accounting terms with which you should be familiar appears below:

Annuity	Interest
Compound interest	Present value
Discounting the future amount(s)	Present value of an annuity
Future value of a single amount	Principal
Future value of an annuity	Simple interest

Instructions

For each item below, enter in the blank the term that is described.

1. _______________________________ The amount borrowed or invested.
2. _______________________________ A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).
3. _______________________________ Payment for the use of another's money.
4. _______________________________ The interest computed on the principal only.
5. _______________________________ The value at a future date of a given amount invested assuming compound interest.
6. _______________________________ The sum of all the rents (payments or receipts) plus the compound interest on them.
7. _______________________________ The value now of a given amount to be invested or received in the future assuming compound interest.
8. _______________________________ A series of future receipts or payments discounted to their value now (today) assuming compound interest.
9. _______________________________ The process of determining present value.
10. _______________________________ The interest computed on the principal and any interest earned that has ...