rate which is divided by compounding periods to calculate periodic rate must be___________________?

A: Annuity return

B: Deferred annuity return

C: Nominal rate

D: Semiannual discount rate

Answer & Explanation Discussion
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Nominal rate

Future value of interest if it is calculated two times a year can be a classified as__________________?

A: Semiannual discounting

B: Annual discounting

C: Annual compounding

D: Semiannual compounding

Answer & Explanation Discussion
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Semiannual compounding

In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

A: Increased cash

B: Decreased cash

C: Increased liabilities

D: Increased equity

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Decreased cash

Total amount of depreciation charged on long term assets is classified as______________?

A: Accumulated depreciation

B: Depleted depreciation

C: Accumulated appreciation

D: Accumulated appreciation schedule

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Accumulated depreciation

Payment of security if it is made at end of each period such as beginning of year is classified as______________?

A: Annuity due

B: Payment fixed series

C: Ordinary annuity

D: Deferred annuity

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Annuity due

An annuity with an extended life is classified as_____________?

A: Extended life

B: Perpetuity

C: Deferred perpetuity

D: Due perpetuity

Answer & Explanation Discussion
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Perpetuity

In time value of money, periodic rate is_________?

A: Not shown on timeline

B: Shown on timeline

C: Multiplied on timeline

D: Divided on timeline

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Shown on timeline

Payment if it is divided with interest rate will be formula of__________?

A: Future value of perpetuity

B: Present value of perpetuity

C: Due perpetuity

D: Deferred perpetuity

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Present value of perpetuity

In calculation of time, value of money, N represents___________?

A: Number of payment periods

B: Number of investment

C: Number of installments

D: Number of premium received

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Number of payment periods

Procedure of finding present values in time value of money is classified as____________?

A: Compounding

B: Discounting

C: Money value

D: Stock value

Answer & Explanation Discussion
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Discounting

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