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DET527 – Time Value of Money

Course and Test $  60.00
Course and Test PDF $  45.00
Additional Hard Copy Test $    9.00
Additional Online Test $    9.00

 

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SKU: DET527. Category: .

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CPE Credit Hours: 3

Field of Study: Finance

 

Money has value because with it one can acquire assets and services and discharge obligations. The holding, borrowing or lending of money can result in costs or earnings. And the longer the time period involved, the greater the costs or the earnings. The cost or earning of money as a function of time is the time value of money.

Accountants must have a working knowledge of compound interest, annuities, and present value concepts because of their application to numerous types of business events and transactions which require proper valuation and presentation. These concepts are applied in the following areas: (1) sinking funds, (2) installment contracts, (3) pensions, (4) long-term assets, (5) leases, (6) notes receivable and payable, (7) business combinations, and (8) amortization of premiums and discounts.

Time value of money is also a critical consideration in financial and investment decisions. For example, compound interest calculations are needed to determine future sums of money resulting from an investment. Discounting, or the calculation of present value, which is inversely related to compounding, is used to evaluate the future cash flow associated with capital budgeting projects. There are plenty of applications of time value of money in accounting and finance. The purpose of this course to present the tools and techniques that will help you measure the present value of future cash inflows and out¬flows.

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This is a QAS self-study CPE course. Final Exam Minimum Grade: 70%
Program level: Basic | Prerequisites: None | Advanced Preparation: None Required
Maximum Time Allowed To Complete Program: One Year From Date Of Purchase