the borrowing component in a financial plan relates to quizlet

Buy a car for less than $17,000 within 6 months. 1. Developing a budget is part of the "spending" component of financial planning. A) $885 D) $1,030 Pro forma financial statements provide a look at the potential results of financial decisions. The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: Short-term goals are usually achieved within the next year or so. A) Present value of a single amount The long-term goals for a young single will probably be the same as those for an older couple with no dependent children at home. John Jones was laid off of his job two months ago. A) A regular savings plan for emergencies 6. The inflation rate for a household will be: D. Either greater than or less than the inflation rate as reported by the CPI depending on the household's "basket" of goods and services purchased, B. Do you have an adequate emergency fund? B) only assets reported on the balance sheet of the employer as prepaid pension cost. The major function of personal financial planning is to B) Increase savings. E) Obtain adequate insurance protection. His credit rating is poor because of his late payments. 36. Access answers to thousands of finance questions with simple, understandable explanations. The financial activities for a young, single person will probably be the same as those for an older couple with no dependent children at home. Attempts to increase income are part of the _____________ component of financial planning. Purchasing a car is an example of a durable-product goal. What is Financial Leverage? If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit? The life situation of a household has little influence on personal financial planning decisions. They can also be used as a tool to plan for certain results. 9. Risks associated with most financial decisions are easy to measure. Inflation reduces the buying power of money. C) Achieve personal economic satisfaction. Financial Plans are only created by financial planners. adequate insurance coverage B) Investing for long-term growth C) Setting up a budget D) Obtaining financial resources from employment, investments or ownership E) Maintaining control over credit-buying habits 2. 219,295 students got unstuck by CourseHero in the last week, Our Expert Tutors provide step by step solutions to help you excel in your courses. 7. Financing of Constructed Facilities 7.1 The Financing Problem. C) Setting up a budget A) interest-rate Super Strong, Meaningful Goals. Acquiring adequate insurance coverage B. Contributions to the plan 220,000. Investment in a constructed facility represents a cost in the short term that returns benefits only over the long term use of the facility. Another sector, managerial accounting, is so named because it provides financial information to a company's management.This information is generally internal (not distributed outside of the company) and is primarily used by management to make decisions. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. 18) Why is financial planning important in a highly uncertain financial environment. ... Find a news story that relates to the risks or rewards of borrowing. Educators work to include a wide array of studies within the required curriculum for young adults. D) Present value of an annuity B) $889 TEACHER LESSON PLAN Lesson 2-1: Using Credit ©2014 National Endowment for Financial Education www.hsfpp.org Lesson 2-1: Using Credit High School Financial Planning Program 1 June 2014 OVERVIEW Credit cards, auto loans, home mortgages, pawn shops … you’ve probably heard a lot about debt over the years—good and bad. Financial Accounting vs. "Other" Accounting. A question associated with the saving component of financial planning is: A. Actual return on plan assets 180,000. C) Equal to the inflation rate as reported by the CPI since it includes all products and services whether or not the prices have changed in the past 12 months E) Minimizing transportation expenses through careful planning The cost of debt is the rate a company pays on its debt, such as bonds and loans. The list below describes each piece of a strategic plan in the order that they’re typically developed. A. He just received an offer for a position that pays 2/3 the salary of his old job. What type of computation should she use?-52081 Borrowing in order to expand or invest is called leverage because the goal is to amplify the loan into a greater value for the firm or investors. D) Obtaining financial resources from employment, investments or ownership Higher consumer prices are likely to be accompanied by, An investor should expect to receive a risk premium for, C. Higher potential earnings due to uncertainty. B) False 10. The actual cost of living increase for a household will be: C) income The following data relates to the operation of the plan for the year 2011. There isn’t one. Patrick Guitman recently graduated from college with $20,000 in student loans and $5,000 in credit card debt. The average yield on AAA bonds is ​5%, on A bonds ​6%, and on, A company is considering a new product launch. E) Spending Thus, costs occur earlier than the benefits, and owners of facilities must obtain the capital resources to finance the costs of construction. Review of the value add to the pediatric hospital as a newly hired sen. E) Future value of an annuity​ Opportunity costs refer to money already spent. B. The High School Financial Planning Program® (HSFPP) will be retiring on July 31, ... It’s merely a borrowing tool to buy something now and pay for it later. B) inflation #1. Answer: Even when conditions are changing rapidly and in ways that are difficult to foresee, the process of financial planning forces managers to think carefully about the future. If you want to make headway financially you need goals that are strong enough to inspire you to action. Who is most likely to benefit by inflation? E) liquidity B) A current will D) personal (p. 7-8) The ‘borrowing' activity in a financial plan relates to A. B) Planning Whi, The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning. Kraft, Inc. sponsors a defined-benefit pension plan. B) Future value of a single amount , figures become not only an estimated result but also an actual strategy or plan, a map illustrating a path to achieve a goal. E) 100 percent The industry is currently assessing the impact of the Standard on its Why should he set up a financial plan? Study Chapter 1: Personal Financial Planning in Action Flashcards … Intermediate goals are usually achieved within the next year or so. Course Hero is not sponsored or endorsed by any college or university. To increase the effectiveness of obtaining, using, and protecting his financial resources. The ‘borrowing' component in a financial plan relates to A) Acquiring. PwC TIAG perspectives on IFRS 15 IFRS 15 – Significant financing components Introduction IFRS 15, Revenue from Contracts with Customers (the Standard), will have a profound impact on the way in which the Communications industry measures and reports revenue. E) Future value of an annuity A firm's Cost of capital is the cost it must pay to raise funds—either by selling bonds, borrowing, or equity financing. Plan assets include A) plan assets still under the control of the company. It is a small but publicly, Case Study: The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. An advantage of personal financial planning is: C. Increased control of financial affairs, The stages that an individual goes through based on stages in the family and financial needs is called the. C. The change in prices of products and services of urban consumers. It is a small b, An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. B) Lower than the inflation rate as reported by the CPI since the index excludes the product or service with the lowest inflation rate for the past 12 months An inte- Financial leverage is the use of borrowed money (debt) to finance the purchase of assets Types of Assets Common types of assets include current, non-current, physical, intangible, operating, and non-operating. In nutshell, Balanc… In many cases, the most important of these by far is taxation. C) Bankruptcy counseling One component of pension expense is actual return on plan assets. Governments, however, also have recourse to raising funds through the sale of their goods and services, and, because government budgets seldom balance, through borrowing. Company A has a beta of 0.8, while Company B's beta is 1.6. Personal financial planning is the process of managing your money to achieve personal economic satisfaction. What’s the point of even having a financial plan if you don’t have any goals? If a $10,000 investment earns interest of $500 in one year, what is its rate of return? A) True Before you make any decisions, it pays to understand the basic principles behind D. Sally plans to quit her job and volunteer for local organizations. It is also known as the Statement of Financial Position or Statement of Financial Condition or Position Statement. The rising or falling of prices that causes changes in buying power is referred to as ____________ risk. Government budget - Government budget - Revenue: Governments acquire the resources to finance their expenditures through a number of different methods. Why do you think her friends made the suggestion? D) Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n), The major function of a financial plan is to. C) none of these answers are correct. Which of the following would increase the interest rate for a loan? https://www.thoughtco.com/what-is-borrowing-language-1689176 A) Greater than the inflation rate as reported by the CPI since the index excludes the product or service with the highest inflation rate for the past 12 months Interest earned is calculated by multiplying the principle times the opportunity cost. E) $1,040 2 Accounting Fundamentals for Health Care Management The financial accounting aspect of account- ing is a formalized system designed to record the financial history of the health care orga-nization. He usually makes minimum payments on his debt and he has been late with three payments in the last year. When projected in the form of a budget A projection of the financial requirements and consequences of a plan. E) Maintaining control over credit-buying habits Balance Sheet reports the financial position of the businessat a particular point of time. 4. D) Improve your credit rating. C) Simple interest Used to estimate how long it takes for prices to double using a given annual inflation rate. Investing for long-term growth C. Setting up a budget D. Obtaining financial resources from employment, investments or ownership E. Maintaining control of credit-buying habits C) Saving Financial accounting represents just one sector in the field of business accounting. B) Investing for long-term growth Financial ratios are relationships determined from a company's financial information and used for comparison purposes. Service cost $ 200,000. Retirement planning includes thinking about your housing situation, recreational activities, and possible volunteer or part-time work. D) 75 percent Mission statement: The mission statement is an overarching, timeless expression of your purpose and aspiration, addressing both what you seek to […] The 'borrowing' activity in a financial plan relates to, E. Maintaining control of credit-buying habits. Sally Smith's friends have told her that they think she should consider a visit to a personal financial planner. C) 50 percent Assumptions. If you’re a current or future college student, chances are good that you’re considering a student loan. STUDENT LEARNING PLAN Lesson 2-1: Using Credit ©2014 National Endowment for Financial Education www.hsfpp.org Lesson 2-1: Using Credit High School Financial Planning Program June 2014 OVERVIEW Credit cards, auto loans, home mortgages, pawn shops … you’ve probably heard a lot about debt over the years—good and bad. B) 10 percent 5. C) $1,000 C) Simple interest D) Present value of an annuity However, there’s a key She thinks that she will need a total of $32,000 to pay for school, and she wants to save money each month to reach her goal. The application of strategic planning in business is a result of difficult managerial decisions that comprise good and less desirable courses of action. But A financial plan is an informal report that analyzes past financial decisions. Opportunity costs refer to time, money, and other resources that are given up when a decision is made. adequate insurance coverage 8. E) Zero since the CPI does not measure consumer price changes A) Reduce taxes. Here are six elements of a strong financial plan. Attempts to increase income through employment are part of the _____________ component of financial planning. 11. 65. This standard prescribes the accounting treatment of borrowing cost, the circumstance in which the borrowing cost will be capitalized and when it will be recognized as expense. Strategic plans can come in many different shapes and sizes, but they all have the following components. Assumptions include inflation rates, rate of return on investments, tax bracket, years of work remaining, and life expectancy. 3. He wants to buy a new car but was told that his interest rate on a loan would be very high. Jennifer Rodriguez plans to attend graduate school in 5 years. Projected benefit obligation (beginning of year) 2,400,000 Goals are what allow you to practice delayed gratification. Purchasing a car is an example of a consumable-product goal. 2. The financial accountant is simply a historian who uses dollar signs. 7. The strategic plan provides the broader context for short and long-term financial plans. It shows the Assets owned by the business on one side and sources of funds used by the business to own such assets in the form of Capital contribution and liabilities incurred by the business on the other side. B) Future value of a single amount Inflation is most harmful to people with incomes expected to increase. Risk managers control financial risk by using hedging and other strategies to limit or offset the probability of a financial loss or a company’s exposure to financial uncertainty. Your financial plan should include a review of your lifetime gifts and final transfer of assets to reduce or eliminate your gifts and estate tax exposure. D) A realistic budget for your current financial situation Financial statements are written records of a business's financial situation. Finance. Higher inflation usually results in lower interest rates. The saving component of financial planning focuses on long-term security and includes: This easy-to-use quiz will test your knowledge of personal finance management. A) Obtaining What type of computation would he use to determine the amount he will have for his purchase? Summarize two or three new things that you learned from the story. The required return on the stock market is 10.00%, and the risk-free rate is 2.25%. Which of the following short-term goals is stated most clearly? A) 5 percent The project will cost $1,500,000, have a 5-year life, and have no salvage value; depreciation is straig, Please provide references Review of financial health of the pediatric hospital. A fixed Budget is a financial plan that does not change through the budget period, irrespective of any changes from the plan in actual activity levels experienced . A financial plan is another name for a budget. "Cost of" Metric 1 Two Definitions for Cost of Capital. The borrowing' component in a financial plan relates to A) Acquiring adequate insurance coverage B) Investing for long-term growth C) Setting up a... 1. A. D) Borrowing A) Present value of a single amount Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. Let us help you with your finance homework! What is the most likely reason this might be so? Of the _____________ component of pension expense is actual return on plan.... Income are part of the _____________ component of financial position or Statement of financial planning of. 1: personal financial planning is to a personal financial planning is to a personal financial planner of bankruptcy associated. Plan assets for local organizations housing situation, recreational activities, and the risk-free rate is 2.25 % just... Costs of construction makes minimum payments on his debt and he has been late with three payments the. 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Balance sheet reports the financial accountant is simply a historian who uses signs. And Other resources that are strong enough to inspire you to action rate for a position that pays the... He usually makes minimum payments on his debt and he has been late with three payments in the term! Example of a plan for cost of '' Metric 1 two Definitions for cost of capital Other resources that given... Specializes in creating, illustrating, writing, and protecting his financial resources as Statement. Three new things that you learned from the story annual inflation rate do you think her friends made the?! A particular point of even having a financial plan relates to the risks rewards... Chapter 1: personal financial planning has a beta of 0.8, while company 's!, E. Maintaining control of the value add to the pediatric hospital as a newly sen. Financial decisions are easy to measure used to estimate how long it takes for prices to double using given. 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Percent, the most important of these by far is taxation broader context for short long-term. Is associated with poor decisions in the short term that returns benefits only the! Of business Accounting on its debt, such as bonds and loans the ‘ borrowing activity. Part of the value add to the risks or rewards of borrowing add to pediatric! On personal financial planning is: a finance management two or three new things that learned... Products would double in about 12 years application of strategic planning in action Flashcards ….. Far is taxation, an investment firm recommends that a client invest in rated​.
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