Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

10. Time Value of Money

Time Value of Money Equations

Financial Accounting

10. Time Value of Money

Time Value of Money Equations

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Multiple Choice

Which of the following is an example of an annuity?

Receiving a single payment of $5,000 after 5 years

Receiving $1,000 at the end of each year for 5 years

Receiving $1,000 at irregular intervals over 5 years

Receiving varying amounts each year for 5 years

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Verified step by step guidance

Step 1: Understand the concept of an annuity. An annuity is a series of equal payments made at regular intervals over a specified period of time. These payments can occur at the beginning or end of each interval, depending on whether it is an ordinary annuity or an annuity due.

Step 2: Analyze the first option: 'Receiving a single payment of $5,000 after 5 years.' This is not an annuity because it involves only one payment rather than a series of equal payments.

Step 3: Analyze the second option: 'Receiving $1,000 at the end of each year for 5 years.' This fits the definition of an annuity because it involves equal payments ($1,000) made at regular intervals (end of each year) over a specified period (5 years).

Step 4: Analyze the third option: 'Receiving $1,000 at irregular intervals over 5 years.' This is not an annuity because the payments are not made at regular intervals.

Step 5: Analyze the fourth option: 'Receiving varying amounts each year for 5 years.' This is not an annuity because the payments are not equal in amount.