The cost of debt is the rate a company pays on its debt, such as bonds and loans. A) Present value of a single amount B) Planning Developing a budget is part of the "spending" component of financial planning. B) only assets reported on the balance sheet of the employer as prepaid pension cost. But Inflation is most harmful to people with incomes expected to increase. #1. C) Achieve personal economic satisfaction. 18) Why is financial planning important in a highly uncertain financial environment. Assumptions include inflation rates, rate of return on investments, tax bracket, years of work remaining, and life expectancy. A) Reduce taxes. Thus, costs occur earlier than the benefits, and owners of facilities must obtain the capital resources to finance the costs of construction. 4. Opportunity costs refer to money already spent. Buy a car for less than $17,000 within 6 months. E) Minimizing transportation expenses through careful planning The industry is currently assessing the impact of the Standard on its B) Future value of a single amount Balance Sheet reports the financial position of the businessat a particular point of time. John Jones was laid off of his job two months ago. 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. E) Zero since the CPI does not measure consumer price changes Access answers to thousands of finance questions with simple, understandable explanations. Government budget - Government budget - Revenue: Governments acquire the resources to finance their expenditures through a number of different methods. Purchasing a car is an example of a consumable-product goal. 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. Super Strong, Meaningful Goals. 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. If a $10,000 investment earns interest of $500 in one year, what is its rate of return? Jennifer Rodriguez plans to attend graduate school in 5 years. Kraft, Inc. sponsors a defined-benefit pension plan. Which of the following short-term goals is stated most clearly? A) Present value of a single amount Intermediate goals are usually achieved within the next year or so. What type of computation should she use?-52081 Sally Smith's friends have told her that they think she should consider a visit to a personal financial planner. D) Borrowing Interest earned is calculated by multiplying the principle times the opportunity cost. 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. The list below describes each piece of a strategic plan in the order that they’re typically developed. He just received an offer for a position that pays 2/3 the salary of his old job. Mission statement: The mission statement is an overarching, timeless expression of your purpose and aspiration, addressing both what you seek to […] The required return on the stock market is 10.00%, and the risk-free rate is 2.25%. E) $1,040 D) Present value of an annuity Plan assets include A) plan assets still under the control of the company. In many cases, the most important of these by far is taxation. D) Improve your credit rating. What type of computation would he use to determine the amount he will have for his purchase? B) Increase savings. C) Setting up a budget C) income B) False A. The ‘borrowing' component in a financial plan relates to A) Acquiring. When projected in the form of a budget A projection of the financial requirements and consequences of a plan. D) Obtaining financial resources from employment, investments or ownership Finance. What is Financial Leverage? Purchasing a car is an example of a durable-product goal. A firm's Cost of capital is the cost it must pay to raise funds—either by selling bonds, borrowing, or equity financing. Financial Accounting vs. "Other" Accounting. In nutshell, Balanc… E) Future value of an annuity Acquiring adequate insurance coverage B. E) Future value of an annuity​ One component of pension expense is actual return on plan assets. "Cost of" Metric 1 Two Definitions for Cost of Capital. The following data relates to the operation of the plan for the year 2011. The application of strategic planning in business is a result of difficult managerial decisions that comprise good and less desirable courses of action. Personal financial planning is the process of managing your money to achieve personal economic satisfaction. A) 5 percent 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 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. He usually makes minimum payments on his debt and he has been late with three payments in the last year. 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. Governments, however, also have recourse to raising funds through the sale of their goods and services, and, because government budgets seldom balance, through borrowing. 8. C) Bankruptcy counseling C. The change in prices of products and services of urban consumers. The 'borrowing' activity in a financial plan relates to, E. Maintaining control of credit-buying habits. A financial plan is another name for a budget. Financial statements are written records of a business's financial situation. It is a small but publicly, Case Study: The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. D) $1,030 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. 36. 1. What’s the point of even having a financial plan if you don’t have any goals? This easy-to-use quiz will test your knowledge of personal finance management. B) Investing for long-term growth When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. E) 100 percent It is a small b, An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. Attempts to increase income through employment are part of the _____________ component of financial planning. 11. What is the most likely reason this might be so? 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. 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. Investment in a constructed facility represents a cost in the short term that returns benefits only over the long term use of the facility. If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit? E) liquidity They can also be used as a tool to plan for certain results. C) Saving Opportunity costs refer to time, money, and other resources that are given up when a decision is made. https://www.thoughtco.com/what-is-borrowing-language-1689176 D) Present value of an annuity Do you have an adequate emergency fund? A) interest-rate Goals are what allow you to practice delayed gratification. Used to estimate how long it takes for prices to double using a given annual inflation rate. There isn’t one. Assumptions. ... Find a news story that relates to the risks or rewards of borrowing. 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. 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. Strategic plans can come in many different shapes and sizes, but they all have the following components. 7. Risks associated with most financial decisions are easy to measure. 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. The strategic plan provides the broader context for short and long-term financial plans. 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 (p. 7-8) The ‘borrowing' activity in a financial plan relates to A. Attempts to increase income are part of the _____________ component of financial planning. D. Sally plans to quit her job and volunteer for local organizations. 3. Review of the value add to the pediatric hospital as a newly hired sen. 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. However, there’s a key The financial accountant is simply a historian who uses dollar signs. Actual return on plan assets 180,000. B) inflation The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning. Here are six elements of a strong financial plan. Projected benefit obligation (beginning of year) 2,400,000 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 . B) 10 percent D) Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased Pro forma financial statements provide a look at the potential results of financial decisions. 10. 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 financial plan is an informal report that analyzes past financial decisions. A) Obtaining 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. A question associated with the saving component of financial planning is: A. To increase the effectiveness of obtaining, using, and protecting his financial resources. 5. C) 50 percent 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 Summarize two or three new things that you learned from the story. The life situation of a household has little influence on personal financial planning decisions. 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. The actual cost of living increase for a household will be: 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. The average yield on AAA bonds is ​5%, on A bonds ​6%, and on, A company is considering a new product launch. Short-term goals are usually achieved within the next year or so. If you want to make headway financially you need goals that are strong enough to inspire you to action. He wants to buy a new car but was told that his interest rate on a loan would be very high. 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. Financial accounting represents just one sector in the field of business accounting. , figures become not only an estimated result but also an actual strategy or plan, a map illustrating a path to achieve a goal. A) A regular savings plan for emergencies Inflation reduces the buying power of money. E) Maintaining control over credit-buying habits Company A has a beta of 0.8, while Company B's beta is 1.6. Why do you think her friends made the suggestion? 9. B. It is also known as the Statement of Financial Position or Statement of Financial Condition or Position Statement. D) personal Higher inflation usually results in lower interest rates. 2. 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. C) Simple interest C) none of these answers are correct. D) A realistic budget for your current financial situation The saving component of financial planning focuses on long-term security and includes: Financial ratios are relationships determined from a company's financial information and used for comparison purposes. A) $885 6. A) True Patrick Guitman recently graduated from college with $20,000 in student loans and $5,000 in credit card debt. A. If you’re a current or future college student, chances are good that you’re considering a student loan. 7. Financing of Constructed Facilities 7.1 The Financing Problem. 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. E) Spending 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. An inte- C) Simple interest Let us help you with your finance homework! Course Hero is not sponsored or endorsed by any college or university. Service cost $ 200,000. Before you make any decisions, it pays to understand the basic principles behind B) Future value of a single amount Contributions to the plan 220,000. Which of the following would increase the interest rate for a loan? 65. 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. Study Chapter 1: Personal Financial Planning in Action Flashcards … Educators work to include a wide array of studies within the required curriculum for young adults. The major function of personal financial planning is to Who is most likely to benefit by inflation? B) $889 The rising or falling of prices that causes changes in buying power is referred to as ____________ risk. 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 His credit rating is poor because of his late payments. 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. Financial Plans are only created by financial planners. 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. Whi, The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. B) A current will Why should he set up a financial plan? 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. E) Obtain adequate insurance protection. 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