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3 years ago

Which results are more likely for someone without personal finance skills? Select three options.

Business

2 answers:

Tema [17]3 years ago

6 0

Answer:

Which results are more likely for someone without personal finance skills? Select three options.

1) larger long-term credit or loan costs

2)less preparation for emergencies

3)fewer utility expenses

4)simple long-term investment strategies

5)increased long-term challenges

Explanation: ANSWER 1,2,5

KiRa [710]3 years ago

4 0

Answer:

larger long-term credit or loan costs

less preparation for emergencies

increased long-term challenges

Explanation:

Personal finance involves planning and managing individual or family financial activities such as income generation, saving, spending, insurance, and investments. The process of managing personal finance is through budgeting and the development of a financial plan.

Personal finance can be done by oneself or with the help of a personal financial manager. The objective is to help one meet both their short term and long term financial goals. Personal finance planning assists one meet expected future expenditures such as retirement while preparing them for unforeseen emergencies.

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Supervisors counting cash receipts daily is an example of:.

netineya [11]

Answer:

Independent internal verification

Explanation:

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2 years ago

A company buys equipment for $48,000, expects to use it for ten years, and then sell it for $6,000. using the straight-line meth

Vesnalui [34]

Using the straight-line method, the company should report annual depreciation for the equipment of $4,200.

Given,

A company buys equipment for $48,000 expects to use it for ten years, and then sell it for $6,000

The formula to calculate annual depreciation is given below-

Annual depreciation = (Original cost - salvage value) / Estimated life(years)

Annual depreciation = ($48,000 - $6,000) / 10

Thus, annual depreciation = $4,200

A standard yearly rate at which depreciation is charged to a fixed asset is called annual depreciation. Thus, to calculated depreciation the straight-line method is used. Where you need to subtract the asset's salvage value from its cost.

To learn more about annual depreciation here:

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2 years ago

Software Sales Supply is expected to pay its first annual dividend of $1.10 per share in Year 3. Starting in Year 6, the company

Andru [333]

Explanation:

Let the dividend paid in Year n be Dn

Given, D3 = $1.10

D4 = $1.10

D5 = $1.10

Growth in dividend from Year 6 = g = 3.2%

D6 = D5(1+g) = 1.10(1+0.032) = $1.135

Required Return = r = 13.1%

According to Gordon's Growth model,

P5 = D6/(r - g) = 1.135/(0.131 - 0.032) = $11.464

Present Value of the stock = P0 = D3/(1+r)3 + D4/(1+r)4 + D5/(1+r)5 + P5/(1+r)5

= 1.10/(1+0.131)3 + 1.10/(1+0.131)4 + 1.10/(1+0.131)5 + 11.464/(1+0.131)5

= $8.22

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3 years ago

Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer t

Ad libitum [116K]

Answer:

The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.

Explanation:

The perpetuities can becalculate as follow

C/rate = Perpetuities

the reasoning behind this formula:

$C * \frac{1-(1+r)^{-time} }{rate} = PV\\$

If we calculate limit whe ntime is infite,

because at more time 1 + r gets closer and closer to 0

we get on the dividend

1 - 0

So we have C x 1/i = C/i

Next part would be why the first cash flow is more relevant than the subsequent cash flow:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Here if time increases, then the divisor get closer to ∞ so we have

P ( a constant) /∞ = 0

So the first cashflow is more relevant than the more distant cash flow

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3 years ago

Blossom Company has the following transactions related to notes receivable during the last 2 months of 2019. The company does no

Sunny_sXe [5.5K]

Answer:

Nov 1 Notes Receivable-C Bohr 66000 Dr

Cash 66000 Cr

Dec 11 Notes Receivable-KR Pine 5400 Dr

Sales Revenue 5400 Cr

Dec 16 Notes Receivable-A Murdock 7200 Dr

Accounts Receivable 7200 Cr

Dec 31 Interest receivable 598 Dr

Interest Revenue 598 Cr

Explanation:

We need to calculate the interest accrued on all the notes. We will then add the interests on these notes and credit interest revenue by that amount and debit interest receivable.

Interest revenue on Note 1

Interest Revenue = 66000 * 0.05 * 2/12 = $550

Interest revenue on Note 2

Number of days interest is accrued for is 20 days (31-11=20)

Assuming a 360 day year.

Interest revenue = 5400 * 0.07 * 20/360 = $21

Interest revenue on Note 3

No of days interest is accrued for is 15 (31-16 = 15)

Assuming a 360 day year.

Interest revenue = 7200 * 0.09 * 15/360 = $27

Total Interest revenue = 550 + 21 + 27 = $598

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3 years ago