Name Three of the Six Statements of Federal Financial Accounting

question 142

Essay

Name three of the six Statements of Federal Financial Accounting concepts (SFFAC's)issued by the FASAB:

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Definitions:

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth or return.

Present Value

Today's equivalent value of a forthcoming sum of money or stream of payments, according to a specified interest rate.

Compound Interest

This refers to the method of calculating interest where the amount is based on the initial principal as well as the interest that has accumulated over prior periods for a loan or deposit.

Future Value

The value of an asset or cash at a specific future date, based on its expected growth over time.