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What are the details needed to send demand draft?
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
What is the Difference between the future value of annuity and sinking fund?
future value of an annuity is a reciprocal of a sinking fund
What is the definition of offset accounting?
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.
Impact of future value in financial decision?
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.
What is the formula for calculating the future value of compound interest bonds?
The formula for calculating the future value of compound interest bonds is: FV PV (1 r)n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of compounding periods.
What is the carrying value of a long term note payable?
Is computed as the future value of all remaining future payments, using the market rate of interest.
How is the future value related to the present value of a single sum?
The present value is the reciprocal of the future value.
What is the fullform of VPP?
The full form of VPP is "Value Payable Post"
Bond payable book value?
is bond payable a current liability
Calculate the PV of the single cash flow?
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
Maturity value of an interest-bearing note payable is the?
Face value plus interest.
How do you compute present and future value of a cash flow stream?
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
If a company purchase equipment on account What is the assets here?
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.
What is the difference between present value interest factors versus future value interest factor?
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.
Is the present value factor the exponent of the future value factor?
The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.
Is the face value of an investment the same as its future value?
No, the face value of an investment is not the same as its future value. The face value is the initial value of the investment, while the future value is the value it will have at a later date after earning interest or experiencing changes in market value.
Present value of a future amount?
the current dollar value of a future amount
