TAILIEUCHUNG - Intermediate Accounting - Chap006

The time value of money means that money can be invested today to earn interest and grow to a larger dollar amount in the future. Time value of money concepts are useful in valuing several assets and liabilities. Interest is the amount of money paid or received in excess of the amount borrowed or lent. | Time Value of Money Concepts 6 Chapter 6: Time Value of Money Concepts Time Value of Money Interest is the rent paid for the use of money over time. That’s right! A dollar today is more valuable than a dollar to be received in one year. The time value of money means that money can be invested today to earn interest and grow to a larger dollar amount in the future. Time value of money concepts are useful in valuing several assets and liabilities. Interest is the amount of money paid or received in excess of the amount borrowed or lent. Learning Objectives Explain the difference between simple and compound interest. LO1 Our first learning objective in Chapter 6 is to explain the difference between simple and compound interest. Simple Interest Interest amount = P × i × n Assume you invest $1,000 at 6% simple interest for 3 years. You would earn $180 interest. ($1,000 × .06 × 3 = $180) (or $60 each year for 3 years) Simple interest is computed by multiplying an initial investment times .

• Kế toán - Kiểm toán
• Intermediate Accounting
• Balance Sheet
• Income Statement
• Cash Flows
• Economic Environment
• Financial Reporting
• Accrual Accounting
• Lecture Intermediate accounting
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process