If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why? (3-6 sentences. 2.0 points) 5. Which strategy for saving do you think would work best for you?
FP/101 Midterm Exam | | First Name | kuku Last Name |maias| Confirmation # | 19018321 | Score | 60 | Total Questions: | 30 | Total Correct | 18 | Start: | 10/22/2011 6:04:50 PM | End: | 10/22/2011 6:46:32 PM | Here is some additional information on items you missed: Topic: Question: Which of the following is not one of the steps in the personal financial planning process? Answer: Determining appropriate risk level of participant Key Terms: Personal financial planning process | Topic: Question: Which step in the financial planning process involves developing goals? Answer: Step 2 Key Terms: Financial planning | Topic: Question: Which of the following is not one of the steps in the personal financial planning process? Answer:
Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Fetter Company by the bank on October 25. This memorandum has not been recorded by Fetter. The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undeposited cash on hand. Because of the lack of internal controls, Allan took for personal use all of the undeposited receipts in excess of $3,795.51.
Lesson 1 (3.0 points) 1. What is a money market account? (0.5 points) invests your money in low risk investments with predictable interest rates 2. What is a liquidation policy? (0.5 points) tells you when and how you're able to remove money from the account.
Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
Name at least one of the steps in establishing credit. (0.5 points) Open a Bank account 2. Name at least one alternate option to establishing credit if you are unable to get a credit card yet. (0.5 points) Getting a department store or gas cards 3. What is debt services default?
We assume that the amount of debt has been constant over 2007. A better option to calculate cost of debt would be to use a synthesized rating based on the interest coverage ratio and use the corresponding default spread, but unfortunately we do not have data of these spreads for 2007. We use the market value of equity to estimate the weight of equity. The market capitalization of the firm was 128,2 million on 31-12-2007 (we assume that this is the date of the balance sheet, since this isn’t mentioned in the case). From this we can calculate the following ratio’s: debt/equity = 0,31 debt/(debt+equity) = 0,24 equity/(debt+equity) = 0,76 In calculating these ratio’s we use gross debt instead of net debt, because in our opinion the debt and cash of the firm
Target Analysis Summary We carefully reviewed Target’s 10 K report and found that Target’s auditor Ernst& Young LLP, expressed unqualified opinions on both Target’s consolidated financial statements and internal controls. Based on that, we reviewed the notes to Target’s financial statement and concluded summary in the following. According to independent auditor’s report, financial statements of Target Corporation and its subsidiaries comply with US GAAP, and Target doesn’t have significant accounting policy changes for the past year. No major development beyond the end of accounting period was found in the notes. Also, based on Target’s income statements, Target doesn’t have any revenues or expenses non-recurring in nature.
Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6. Which of the following is NOT part of the financial accounting information system? a.|filing reports with the SEC| b.|reporting a large contingent liability to current and potential shareholders| c.|determining the future cashflows of a proposed flexible manufacturing system| d.|preparing GAAP financial statements| ANS: C PTS: 1 DIF: Meduim OBJ: 1-1 NAT: AACSB Reflective 7. Which of the following does NOT describe cost management system? a.|evaluation of segments or products within the firm| b.|emphasis on the future| c.|externally focused| d.|focus on effective use of
Unit 20 M2 The main features of saving account are as follows: - The main objective of saving account is to promote savings. There is no restriction on the number and amount of deposits. Withdrawals are allowed subject to certain restrictions, the money can be withdrawn either by cheque or withdrawal slip of the respective bank. The rate of interest payable is very nominal on savings account, saving account is of continuing nature. There is no maximum period of holding, a minimum amount has to be kept on savings account to keep it functioning.