| 1 |
Notes Receivable
Notes Receivable seem a little out of place in this chapter, but they are pretty easy, so we'll tackle them quickly.
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11:27 | |
| 2 |
Interest Bearing Notes
When you borrow money, you don't get it for free. Here, we're going to calculate the interest on an interest bearing loan.
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8:26 | |
| 3 |
Non-interest Bearing Notes
"Non-interest bearing" is kind of a misnomer. You may not have to pay interest, but yo don't get all the cash up front, so it ends up being an interest expense anyway!
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6:16 | |
| 4 |
Contingencies
A contingent liability is based on something else. You may or may not have to pay this sort of liability.
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5:58 | |
| 5 |
What is Present Value
What does the "present value of money" actually mean? Why are we calculating it and why do we spend so much time talking about it?
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8:15 | |
| 6 |
Simple vs Compound
Compound interest is the most powerful force in the universe. -Einstein
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14:41 | |
| 7 |
PV of a Lump Sum
A lump sum is a single amount of money that we're trying to figure out the value of. $4,000 in ten years is different than $4,000 today. Using the present value of a lump sum, we can figure out how much that $4,000 in ten years will be worth today.
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4:39 | |
| 8 |
PV of a Lump Sum
We're gonna do another PV of a lump sum problem, and this time you need to watch out for the compounding frequency.
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6:09 | |
| 9 |
Ordinary Annuity
An ordinary annuity is just a series of regular payments over some period of time.
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7:16 | |
| 10 |
Purchasing with an Annuity
Often times, a company will buy equipment but not pay for the full amount up front. In this way, a company can purchase equipment using an ordinary annuity.
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4:31 | |
| 11 |
Finding the Payment
If you already know the present value of the annuity, how can you find the payment amount? That's what we'll tackle in this problem.
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6:07 |
| Click Here to View All Chapter 9 Problems at Once | View | ||
| 1 | Liability Classification | Easy | |
| 2 | Contingent Liabilities | Moderate | |
| 3 | Contingent Liabilities - Warranties | Moderate | |
| 4 | Purchasing with a Non-Interest Bearing Note | Moderate |