F4 M3 - Long-Term Liabilities Flashcards

1
Q

Time Value of Money

A

The use of money over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Annuities

A

Identical periodic payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Ordinary Annuity

A

Payments made at the end of the period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Annuity Due

A

Payments made at the beginning of the period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Equation

Present Value

A

Future value / (1 + r)^n

n = number of period
r = periodic interest rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

If interest compounds are not annual

A

The interest rate needs to be divided

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Equation

Future Value

A

Present value x (1 + r)^n

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The difference between present and future value

A

The amount of interest earned over the period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Equation

Present Value of an Ordinary Annuity

A

Annuity payment x (1 + r)^n

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Equation

Present Value of an Annuity Due

A

Present value of ordinary annuity x (1+ r)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Equation

Future Value of an Ordinary Annuity

A

Periodic payment x (1+r)^n

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Notes Payable are recorded

A

At present value at the time of issurance - discount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Debt Covenants

A

Used to limit or prohibit actions of debtors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Equation

Debt to Equity

A

Total Debt / Stockholders’ Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Equation

Installement Note Receivable Balance

A

The present value of the remaining monthly payments at discount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
A