true
you need:DD Payable To - The name of the person/organization who is going to cash the DDDD Payable city - the city where the DD can be cashedDD Amount - The value of the DD
future value of an annuity is a reciprocal of a sinking fund
One that reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. Discount on note payable, which is a reduction of notes payable to derive the carrying value, is another example.
The future value of money is important in a business decision because you don't want to get less than the future value. You also want to make sure you make money if you will not have access to your money.
How is the value of any asset whose value is based on expected future cash flows determined?
Is computed as the future value of all remaining future payments, using the market rate of interest.
The present value is the reciprocal of the future value.
The full form of VPP is "Value Payable Post"
is bond payable a current liability
Present value of single cash flow is as follows: PV = FV (1 + i)^n Where PV = Present value FV = Future value i = Interest n = time
Face value plus interest.
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
The asset account will be Equipment. You will debit this account to increase its value. The credit side of this transaction will be Accounts Payable. This transaction will increase the value of Accounts Payable, as well.
The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.
Contingent cost is that cost the value of which remains unknown until some specific event happens in future and after the occurrence of specific event the cost which was contingent becomes clear.
the current dollar value of a future amount