What is a tax? (0.5 points) A tax is a financial obligation that a person or company is required by law to pay to the government. 2. What is the Internal Revenue Service? (0.5 points) The Internal Revenue Service is responsible for collecting taxes and interpretation and enforcement of the Internal Revenue Code.
What is financial risk? (0.5 points) Financial risk is the possibility of losing money. What is diversification? (0.5 points) Diversification is an investment strategy in which you spread out your investments among many different types. What is risk tolerance?
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.
3. Social Security pensions are financed by voluntary contributions by workers. 4. The gross replacement rate measures the ratio of taxes paid per year by workers to their annual Social Security pension when they retire. 5.
reliability of measurements. : 4 5 of 5 Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by: a cumulative effect on income in the year of the change. a retrospective reporting of all comparative financial statements shown. a prior period adjustment.
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.
(0.5 points) Advertising is when a company pays for messages that are meant to get consumers to notice and want its products. 4. What is a warranty? (0.5 points) A warranty is a specific promise about product performance that is written down in formal documentation and is usually limited to a specific time frame, so it can expire. 5.