Use the Following Two Columns of Items to Answer the Matching

question 56

Short Answer

Use the following two columns of items to answer the matching questions below:
-future value interest factor
A)a business calculator that performs PV/FV calculations
B)the process of earning interest on interest
C)a series of equal payments received or paid at equal intervals
D)a factor multiplied by today's savings to determine how the savings will accumulate over time

• A)a business calculator that performs PV/FV calculations
• B)the process of earning interest on interest
• C)a series of equal payments received or paid at equal intervals
• D)a factor multiplied by today's savings to determine how the savings will accumulate over time

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each year of the asset's useful life.

Capital Lease

An agreement that grants the lessee the right to use an asset for a long period, typically seen as a purchase by the lessee for accounting purposes.

Original Amount

The initial sum of money involved in a financial transaction, before any deductions, depreciation, or appreciation.

Guaranteed Residual Value

An assurance that an asset will have a specified value at the end of its lease term.