Section 1 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. Name at least two things financial planning could help you do. (0.5 points) Prepare for my future & help me become more respinsible with money.
What is a financial plan? (1.0 points) A financial plan is a way of organizing your finances so you’ll be able to set and meet financial goals, while making sure you have enough money to spend on things you need. 3. What is income? (0.5 points) An income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.
Section 4 Study Questions (12.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) What is a money market account? (0.5 points) A money market is a common type of account offered by banks that is used just as a savings account it. In a money market account you invest your money in low risk investments with predictable interest rates.
What are consumer motives? (0.5 points) Consumer motives are the reasons why people make specific choices in spending their money. 2. What is a specialty good? (0.5 points) Specialty goods are items that the consumer considers special and luxurious.
Section 5 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is credit? (0.5 points) An entry recording a sum received, listed on the right-hand side or column of an account.
Week 8 : Final Week - Final Exam Page 1 1. (TCO C) Which of the following characteristics do intangible assets possess? (Points : 5) Physical existence Claim to a specific amount of cash in the future Long-lived Held for resale 2. (TCO C) The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be (Points : 5) charged off in the current period. amortized over the legal life of the purchased patent.
The organization should primarily focus on the incremental cash flow because the incremental cash flow holds a marginal benefit from the project. Depreciation is considered to be an expense item which means that the greater the depreciation, the larger the expense will be to the organization. Therefore, if Caledonia was looking at the project from an accounting profit view, the profit would be much lower than that of the free cash flow. 2. What are the incremental cash flows for the project in years 1 through 5 and how do these cash flows differ from accounting profits or earnings?
The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested. It measures how Sepracor is using its money. The higher the return on equity, the more funds available to be invested in improving business operations without having to invest more capital. Debt to asset ratio measures the company’s solvency, and the higher the ratio, the lower the borrowing capacity for the company. I would make an investment in the company’s 5% convertible bonds.