Why is the time value of money important for accountants?
Time value of money means that the value of a unity of money is different in different time periods. The sum of money received in future is less valuable than it is today. In other words, the present worth of money received after some time will be less than a money received today.
The importance of time value of money in financial accounting has been increasing tremendously. IFRS is adapting its standards keeping time value of money in its view. Time value of money intends to show the correct picture of an accounting transaction. Be it credit sales for longer period, interest bearing bonds, creating provisions for future periods etc., it has become emminent for the accountants to understand the significance of time value of money and adapt it while preparing accounts.
Time Value of Money What is the time value of money and why is it important? Describe the net present value (NPV) and internal rate of return (IRR) methodologies and their use in capital budgeting decisions. What is NPV when the discount rate (hurdle rate) equals IRR? Project Management
What is time value of money? Why is it important in finance? Discuss the application of time value of money concept in finance with example/s.
Explain what is meant by the time value of money. Why is it important? Why is the present value of $100 that you expect to receive one year from today worth less than $100 received today? How does simple interest compare to compound interest? Which is more desirable to an investor? Why? How does the frequency of compounding affect returns?
Which most closely identifies why it is important for payroll accountants to adhere to the AICPA Code of Ethics? To maintain company profitability. To overlook fraudulent actions of company officers. To protect the assets of the company and remit money owed to the government. To maintain personal standards only.
1. Why does money have a time value? Why is it important? 2. Discuss whether the standard deviation of a portfolio is, or is not, a weighted average of the standard deviations of the assets in the portfolio. Fully explain your answer. 3. You want to invest in bonds. Explain whether or not each provision listed will make the bonds more or less desirable as an investment: call provision, convertible bond provision, and subordinated debt. 4. What is the difference...
How and why "Presentation & Communication" is so important to accountants & business professionals?
how and why "Presentation & Communication" is so important to accountants & business professionals?
Time value of money is one of the most important concepts in Finance. It is applied very frequently by finance professionals in corporate finance, investment management, retirement planning etc... Give an example of the application of Time Value of Money in one of these professional situations.
Discuss the importance of ethics in accounting. Why is it important for accountants to maintain high ethical standards? What are the potential penalties to the accountant and the accountant’s employer for behaving in an unethical manner?
1. BRIEFLY DESCRIBE THE CONCEPT OF TIME VALUE OF MONEY AND EXPLAIN WHY IT IS AN IMPORTANT TOOL FINANCIAL MANAGERS? 2. IDENTIFY AND LIST THE 3 THEORIES OF INTEREST STRUCTURE AND EXPLAIN HOW THEY CAN BE APPLIED. 3.YOUR BOOK TALKS ABOUT TWO ANNUITIES. WHAT ARE THEY AND HOW DO THEY DIFFER FROM EACH OTHER, BOTH IN CONCEPT AND IN THEIR COMPUTATION AND APPLICATION?