Question

In: Accounting

Match the following terms with the appropriate definition.       -       A.      ...

  1. Match the following terms with the appropriate definition.

          -       A.       B.       C.       D.       E.   

    Effective yield or interest rate

          -       A.       B.       C.       D.       E.   

    Monetary liability

          -       A.       B.       C.       D.       E.   

    Compound interest

          -       A.       B.       C.       D.       E.   

    Present Value

          -       A.       B.       C.       D.       E.   

    Future value of a single amount

    A.

    The rate at which money will actually grow.

    B.

    Current worth of future cash flows.

    C.

    Interest accumulates on interest.

    D.

    The money to which an amount invested will grow over time.

    E.

    Fixed obligation to pay an amount in cash.

1 points   

QUESTION 3

  1. Match the following terms with the appropriate definition.

          -       A.       B.       C.       D.       E.   

    Interest

          -       A.       B.       C.       D.       E.   

    Monetary asset

          -       A.       B.       C.       D.       E.   

    Expected cash flow approach

          -       A.       B.       C.       D.       E.   

    Present value of a single amount.

          -       A.       B.       C.       D.       E.   

    Future value of a single amount

    A.

    Claim to a fixed amount of cash

    B.

    Rent paid or received for the use of money.

    C.

    The rate to use is the risk-free rate of interest.

    D.

    The amount of money that a dollar will grow to.

    E.

    Amount of money required today that is equivalent to a given future amount.

Solutions

Expert Solution

Terms Appropriate definition
Effective yield or interest rate The rate at which money will actually grow.
Monetary liability Fixed obligation to pay an amount in cash
Compound interest Interest accumulates on interest.
Present Value Current worth of future cash flows.
Future value of a single amount The money to which an amount invested will grow over time.

3.

Terms Appropriate definition
Interest Rent paid or received for the use of money.
Monetary asset Claim to a fixed amount of cash
Expected cash flow approach The rate to use is the risk-free rate of interest.
Present value of a single amount. Amount of money required today that is equivalent to a given future amount.
Future value of a single amount The amount of money that a dollar will grow to

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