Intermediate Accounting IFRS Edition 2nd Edition, Kieso Weygandt Warfield, Solution Manual

Intermediate Accounting IFRS Edition 2nd Edition, Kieso Weygandt Warfield, Solution Manual

CHAPTER 6

Accounting and the Time Value of Money

ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)

Topics
Questions Brief Exercises
Exercises
Problems
1. Present value concepts. 1, 2, 3, 4, 5, 9, 17, 19
2. Use of tables. 13, 14 8 1
3. Present and future value problems:
a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 6
b. Unknown payments. 10, 11, 12 6, 12, 17 8, 16, 17 2, 7
c. Unknown number of
periods. 4, 9 10, 15 2
d. Unknown interest rate. 15, 18 3, 11, 16 9, 10, 11 2, 7
e. Unknown present value. 8, 19 2, 7, 8, 10, 14 3, 4, 5, 6,
8, 12, 17,
18, 19 1, 4, 6, 7, 9,
13, 14, 15
4. Value of a series of irregular deposits; changing interest rates. 3, 5, 8
5. Valuation of leases, pensions, bonds; choice between projects. 6 15 7, 12, 13,
14, 15 1, 3, 5, 6, 8, 9, 10, 11, 12
6. Deferred annuity. 16
7. Expected cash flows. 20, 21, 22 13, 14, 15

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)

Learning Objectives Brief Exercises
Exercises
Problems
1. Identify accounting topics where the time value of money is relevant.
2. Distinguish between simple and compound interest. 2
3. Use appropriate compound interest tables. 1
4. Identify variables fundamental to solving interest problems.
5. Solve future and present value of 1 problems. 1, 2, 3,
4, 7, 8 2, 3, 6, 9,
10, 15 1, 2, 3, 5,
7, 9, 10
6. Solve future value of ordinary and annuity due problems. 5, 6, 9, 13 3, 4, 6,
15, 16 2, 7
7. Solve present value of ordinary and annuity due problems. 10, 11, 12, 14, 16, 17 3, 4, 5, 6,
11, 12, 17, 18, 19 1, 3, 4, 5,
7, 8, 9, 10,
13, 14
8. Solve present value problems related
to deferred annuities and bonds. 15 5, 7, 8, 13, 14 6, 11, 12
9. Apply expected cash flows to present
value measurement. 20, 21, 22 13, 14, 15

ASSIGNMENT CHARACTERISTICS TABLE

Item
Description Level of Difficulty Time
(minutes)
E6-1 Using interest tables. Simple 5–10
E6-2 Simple and compound interest computations. Simple 5–10
E6-3 Computation of future values and present values. Simple 10–15
E6-4 Computation of future values and present values. Moderate 15–20
E6-5 Computation of present value. Simple 10–15
E6-6 Future value and present value problems. Moderate 15–20
E6-7 Computation of bond prices. Moderate 12–17
E6-8 Computations for a retirement fund. Simple 10–15
E6-9 Unknown rate. Moderate 5–10
E6-10 Unknown periods and unknown interest rate. Simple 10–15
E6-11 Evaluation of purchase options. Moderate 10–15
E6-12 Analysis of alternatives. Simple 10–15
E6-13 Computation of bond liability. Moderate 15–20
E6-14 Computation of pension liability. Moderate 15–20
E6-15 Investment decision. Moderate 15–20
E6-16 Retirement of debt. Simple 10–15
E6-17 Computation of amount of rentals. Simple 10–15
E6-18 Least costly payoff. Simple 10–15
E6-19 Least costly payoff. Simple 10–15
E6-20 Expected cash flows. Simple 5–10
E6-21 Expected cash flows and present value. Moderate 15–20
E6-22 Fair value estimate. Moderate 15–20