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cw2 and q2 eea reviewer
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cw2 and q2 eea reviewer
Untitled Flashcards
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1
Question
is a series of uniform payments made at equal intervals/periodic over a range of periods
Answer
annuity
2
Question
the specific number (amounts) of payments are set to begin and end at a specific length of time e.g. monthly payment of car loan
Answer
annuity certain
3
Question
the annuitant may be paid according to certain event e.g. life and accident insurance
Answer
annuity uncertain
4
Question
is a series of equal payments or receipts occurring over a specified number of periods with the payments or receipts occurring at the END of first (each) period
Answer
ordinary annuity or annuity-immediate
5
Question
are annuities that are computed on different present year and/or future year. It is annuity where the first payment is made at the END of the deferred period
Answer
deferred annuity
6
Question
are uniform/series of equal payments which are done infinitely (ending indefinitely).
Answer
perpetuity or perpetual annuity
7
Question
first payment is done one period after the focal date
Answer
ordinary perpetuity
8
Question
first payment is done several periods after the focal date
Answer
deferred perpetuity
9
Question
is the present worth of a project that has a very long life (more than, say, 35 or 40 years) or when the planning horizon is considered very long or infinite
Answer
capitalized cost
10
Question
is a series of equal payments or receipts occurring over a specified number of periods with the payments or receipts occurring at the beginning/start of the first period
Answer
annuity due
11
Question
is one wherein the cash flow changes (increases or decreases) by the same/constant amount in each cash flow period
Answer
arithmetic gradient cash flow
12
Question
amount of change
Answer
gradient
13
Question
of an asset is the sum of the first cost and the present worth of all future payments and replacements assumed to continue for a long time or perpetual.
Answer
capitalized cost
14
Question
refers to the installment payment of the loan
Answer
amortization
15
Question
It is a process of spreading out or gradual repayment of a loan or a debt over a period of time
Answer
amortization
16
Question
It is commonly applied and synonymous with monthly payments, mortgage loans, car loans, etc
Answer
amortization
17
Question
is a measurement of how much an asset loses in value as a result of external influences impacting its market value.
Answer
depreciation
18
Question
is the process of allocating the depreciable amount of an asset over its useful life systematically and rationally.
Answer
depreciation
19
Question
it is the decrease in the value of a fixed asset, or the value of physical property, over time
Answer
depreciation
20
Question
is the present worth of all the future profits that are to be received through the ownership of a particular property.
Answer
value (first cost)
21
Question
is the amount, which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy and sell.
Answer
market value of a property
22
Question
is what the property is worth to the owner as an operating unit.
Answer
utility or use value of property
23
Question
is the value that is usually determined by the disinterested third party in order to establish a price that is fair to both seller and buyer.
Answer
fair value
24
Question
is the worth of the property as shown in the accounting records of an enterprise. It is sometimes called depreciated book value.
Answer
book value
25
Question
is the price that can be obtained from the property after it has been used. Salvage Year is the year when scrap value is equal to book value.
Answer
salvage / resale value
26
Question
is the price that can be recovered if an asset is disposed of as junk.
Answer
scrap value or junk value
27
Question
it is due to wear and tear of the asset.
Answer
physical depreciation
28
Question
it is due to the obsolescence of the asset.
Answer
functional depreciation
29
Question
refers to the decrease in the value of a property due to the gradual extraction of its contents
Answer
depletion
30
Question
depreciation due to changes in price level.
Answer
monetary depreciation