Time Value of Money : Useful Applications
Field of Study:
CPAs must have a working knowledge of future value and present value concepts because of their application to numerous types of business
events and transactions that require proper valuation and presentation. 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 is used to evaluate the future cash flow associated with capital budgeting projects. This course aims at presenting the time value
tools and techniques that are necessary for fair value measurements and for various financial decisions.
After completing this course you will be able to:
- Identify how the time value of money is relevant and accounting situations where it is used.
- Distinguish between future value and present value concepts.
- Calculate present values and future values.
- Apply present value and future value measurement to annuities.
- Recognize the reason a firm should determine Net Present Value, and define the cost of capital.
Basic Accounting and Math
QAS Self Study
Amount of recommended CPE credit:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org