TAILIEUCHUNG - Lecture Financial Accounting (15e): Appendix B

After completing this chapter you should be able to: Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed; analyze the statement of cash flows and apply the cash flow on total assets ratio; prepare a statement of cash flows;. | The Time Value of Money Future Amounts and Present Values Appendix B Appendix B: The Time Value of Money - Future Amounts and Present Values The Concept An amount of money available today can be safely invested to accumulate to a larger amount in the future. One of the most basic—and important—concepts of investing is the time value of money. This concept is based on the idea that an amount of money available today can be safely invested to accumulate to a larger amount in the future. As a result, an amount of money available today is considered to be equivalent in value to a larger sum available at a future date. Relationships between Present Values and Future Amounts In this example, your initial investment of $500 is the present value. It is invested for four years at 8% interest. Over the four years, the value of your investment increases to $680, the future amount. 0 1 2 3 4 $500 × $540 × $583 × $630 × In this example, your initial investment of $500 is the present value. It is invested for four years at 8% interest. Over the next four years, the value of your investment increases to $680, the future amount. The present value is always less than its future amount. This is the basic idea underlying the time value of money. But this idea often is expressed in different ways, including the following: A present value is always less than a future amount. A future amount is always greater than a present value. A dollar available today is always worth more than a dollar that does not become available until a future date. A dollar available at a future date is always worth less than a dollar that is available today. Applications of the Time Value of Money Concept Determine the amount to which an investment will accumulate over time Determine the amount that must be invested every period to accumulate a required future amount Determine the present value of cash flows expected to occur in the future Investors, accountants, and other .

• Ngân hàng - Tín dụng
• Financial Accounting
• Principles of financial accounting
• Accounting information
• Long term liabilities
• Bond trading
• Bond pricing
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Accounting standards
• Financial reporting
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Financial statement
• Accounting cycle
• Accounting for accruals
• Lecture Financial accounting
• Accounting system
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
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• Accrual accounting
• Income statement
• Accounting conventions
• Internal control
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
• Double entry accounting system
• Credit terminology
• Merchandising businesses
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• Accounting for inventories
• Cash discounts
• The accounting cycle
• International financial reporting standards
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet