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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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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 ...

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