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

The future value of an ordinary annuity table is used when calculating:

the accumulated value of a series of equal payments made at the end of each period

the future value of a single lump-sum payment

the present value of a single lump-sum payment

the present value of an annuity due

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Verified step by step guidance

Understand the concept of an ordinary annuity: An ordinary annuity involves a series of equal payments made at the end of each period, such as monthly or annually.

Recognize the purpose of the future value of an ordinary annuity table: This table is used to calculate the accumulated value of these equal payments over time, factoring in interest rates and the number of periods.

Differentiate between the options provided: The future value of an ordinary annuity table specifically applies to the accumulated value of payments made at the end of each period, not to single lump-sum payments or present value calculations.

Clarify why the other options are incorrect: The future value of a single lump-sum payment and the present value of a single lump-sum payment involve different formulas and tables. Similarly, the present value of an annuity due pertains to payments made at the beginning of each period, not the end.

Conclude that the correct application of the future value of an ordinary annuity table is to calculate the accumulated value of a series of equal payments made at the end of each period.