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This course covers the 'time value of money', a concept at the heart of economics, finance, and business decision making that also is frequently used by accountants when valuing assets and liabilities. The course consists of a single video that covers interest, future value and present value of various cash flows, and internal rates of return. The applications covered include creating savings plans for future goals, such as vacations and college educations, as well as valuing and accounting for bond investments.

Learning Objectives

  • Define the concept of time value of money.
  • Explain how to compute the future value of a variety of cash flows.
  • Explain how to compute the present value of a variety of cash flows.
  • Explain how to compute the internal rate of return of a variety of cash flows.
  • Demonstrate how the concept of time value of money is applied to various savings plans and the valuation of assets and liabilities on the balance sheet.
Last updated/reviewed: May 24, 2022

Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:10Introduction to Time Value of Money - Concepts and Applications
  16:34Time Value of Money - Future Value
  10:46Time Value of Money - Present Value
  11:34Exercises for Concepts and Its Applications
  11:44Internal Rate of Return Calculations
  12:32Bonds
  9:57Accounting for Bond Investments
CONTINUOUS PLAY
  1:14:17Time Value of Money - Concepts and Applications
SUPPORTING MATERIAL
  PDFSlides: Time Value of Money - Concepts and Applications
  PDFTime Value of Money - Concepts and Applications Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM