California State University, Long Beach ACCT MANAGERIAL Chapter 9 (quiz 9) Question 1)The process of finding the present value of a lump sum is called   -              Compounding -                              Discounting -              Accounting -              Annuity   Question 2 Which of the following statements about annuity is correct?   -              Annuity include both even and uneven cash flow -              There are two types of annuity: ordinary annuity and end annuity -              The future value of the perpetuity is calculated as PMT/I -                              Annuity due has payment that occur at the beginning of each period   Question 3 An annuity that has payments that occur at the end of each period is called an”   -              Ending annuity -              Perpetuity -              Annuity due -                              Ordinary annuity         Question 4   If compounding occurs more frequently than once a year, it is often necessary to calculate the  , which is the actual annual rate that applies

California State University, Long Beach

ACCT MANAGERIAL

Chapter 9 (quiz 9)

Question 1)The process of finding the present value of a lump sum is called

-              Compounding

-                              Discounting

-              Accounting

-              Annuity

Question 2

Which of the following statements about annuity is correct?

-              Annuity include both even and uneven cash flow

-              There are two types of annuity: ordinary annuity and end annuity

-              The future value of the perpetuity is calculated as PMT/I

-                              Annuity due has payment that occur at the beginning of each period

Question 3

An annuity that has payments that occur at the end of each period is called an”

-              Ending annuity

-              Perpetuity

-              Annuity due

-                              Ordinary annuity

Question 4

If compounding occurs more frequently than once a year, it is often necessary to calculate the  , which is the actual annual rate that applies.

-              Discounted annual rate

-              Real annual rate

-                              Effective annual rate

-              Compound annual rate

Question 5

The process of finding the future value of a lump sum is called

-              Accounting

-              Discounting

-                              Compounding

-              Annuity