Wiley CPAexcel Exam Review 2014 Study Guide, Financial Accounting and Reporting

Module 13: Present Value

Overview

This module begins by reviewing the basic concepts related to time value of money such as present and future value. The module then covers four major topics in which time value of money applications are used extensively:

1. Bonds payable and bond investments including initial accounting, sales, conversions, warrants, and extinguishments.

2. Debt restructure including settlement, modification of terms, and impairment.

3. Pensions including defined contribution plans, defined benefit plans, and other post-employment benefits.

4. Leases including operating leases and capital leases for both lessees and lessor.

All of these topics are tested on the Financial Accounting and Reporting section of the exam to varying degrees.

A. Fundamentals

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

B. Bonds

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

C. Debt Restructure

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

D. Pensions

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

E. Leases

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

A. Fundamentals

The concepts of time value of money are essential for successful completion of the CPA exam. Time value ...