Purchasing a car is an example of a consumable-product goal. A) Present value of a single amount There isn’t one. Strategic plans can come in many different shapes and sizes, but they all have the following components. Who is most likely to benefit by inflation? Developing a budget is part of the "spending" component of financial planning. 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. Financial Accounting vs. "Other" Accounting. E) Minimizing transportation expenses through careful planning B) Future value of a single amount The financial accountant is simply a historian who uses dollar signs. This easy-to-use quiz will test your knowledge of personal finance management. In nutshell, Balanc… The 'borrowing' activity in a financial plan relates to, E. Maintaining control of credit-buying habits. 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 . Pro forma financial statements provide a look at the potential results of financial decisions. B) 10 percent adequate insurance coverage The industry is currently assessing the impact of the Standard on its 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. The strategic plan provides the broader context for short and long-term financial plans. An inte- The application of strategic planning in business is a result of difficult managerial decisions that comprise good and less desirable courses of action. If a $10,000 investment earns interest of $500 in one year, what is its rate of return? 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 Goals are what allow you to practice delayed gratification. C) Bankruptcy counseling 5. A. 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. The saving component of financial planning focuses on long-term security and includes: It is a small b, An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. C) income 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. E) 100 percent 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. #1. E) liquidity The average yield on AAA bonds is ​5%, on A bonds ​6%, and on, A company is considering a new product launch. But , figures become not only an estimated result but also an actual strategy or plan, a map illustrating a path to achieve a goal. 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. Financial ratios are relationships determined from a company's financial information and used for comparison purposes. D) personal Course Hero is not sponsored or endorsed by any college or university. B) Investing for long-term growth However, there’s a key C) Saving B) Future value of a single amount In many cases, the most important of these by far is taxation. 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. Purchasing a car is an example of a durable-product goal. C) Simple interest E) Future value of an annuity​ 4. Which of the following short-term goals is stated most clearly? Review of the value add to the pediatric hospital as a newly hired sen. 11. Attempts to increase income are part of the _____________ component of financial planning. 2. 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 It is also known as the Statement of Financial Position or Statement of Financial Condition or Position Statement. Financial accounting represents just one sector in the field of business accounting. Super Strong, Meaningful Goals. A) A regular savings plan for emergencies To increase the effectiveness of obtaining, using, and protecting his financial resources. Here are six elements of a strong financial plan. The following data relates to the operation of the plan for the year 2011. A firm's Cost of capital is the cost it must pay to raise funds—either by selling bonds, borrowing, or equity financing. E) Spending 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 Acquiring adequate insurance coverage B. D) Borrowing Whi, The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. Projected benefit obligation (beginning of year) 2,400,000 The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning. Short-term goals are usually achieved within the next year or so. Attempts to increase income through employment are part of the _____________ component of financial planning. The life situation of a household has little influence on personal financial planning decisions. B) inflation B) A current will C) $1,000 D) $1,030 Higher inflation usually results in lower interest rates. He wants to buy a new car but was told that his interest rate on a loan would be very high. John Jones was laid off of his job two months ago. 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. Government budget - Government budget - Revenue: Governments acquire the resources to finance their expenditures through a number of different methods. 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. Why do you think her friends made the suggestion? The major function of personal financial planning is to Used to estimate how long it takes for prices to double using a given annual inflation rate. Study Chapter 1: Personal Financial Planning in Action Flashcards … 18) Why is financial planning important in a highly uncertain financial environment. A) 5 percent If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit? 10. 3. The ‘borrowing' component in a financial plan relates to A) Acquiring. Financial statements are written records of a business's financial situation. A) Reduce taxes. What’s the point of even having a financial plan if you don’t have any goals? B) only assets reported on the balance sheet of the employer as prepaid pension cost. If you want to make headway financially you need goals that are strong enough to inspire you to action. 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. The required return on the stock market is 10.00%, and the risk-free rate is 2.25%. He just received an offer for a position that pays 2/3 the salary of his old job. Opportunity costs refer to money already spent. B) Planning 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. Before you make any decisions, it pays to understand the basic principles behind A. Why should he set up a financial plan? If you’re a current or future college student, chances are good that you’re considering a student loan. Summarize two or three new things that you learned from the story. 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. 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. A) True 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. The cost of debt is the rate a company pays on its debt, such as bonds and loans. Retirement planning includes thinking about your housing situation, recreational activities, and possible volunteer or part-time work. Jennifer Rodriguez plans to attend graduate school in 5 years. E) $1,040 What type of computation should she use?-52081 65. 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. Inflation reduces the buying power of money. Educators work to include a wide array of studies within the required curriculum for young adults. 7. Personal financial planning is the process of managing your money to achieve personal economic satisfaction. A) $885 A) Obtaining A) Present value of a single amount Buy a car for less than $17,000 within 6 months. B) False What is Financial Leverage? Thus, costs occur earlier than the benefits, and owners of facilities must obtain the capital resources to finance the costs of construction. E) Maintaining control over credit-buying habits Plan assets include A) plan assets still under the control of the company. B) Increase savings. C. The change in prices of products and services of urban consumers. "Cost of" Metric 1 Two Definitions for Cost of Capital. D) Present value of an annuity A financial plan is another name for a budget. Assumptions include inflation rates, rate of return on investments, tax bracket, years of work remaining, and life expectancy. 8. 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. B) $889 They can also be used as a tool to plan for certain results. What is the most likely reason this might be so? The list below describes each piece of a strategic plan in the order that they’re typically developed. C) Simple interest Sally Smith's friends have told her that they think she should consider a visit to a personal financial planner. (p. 7-8) The ‘borrowing' activity in a financial plan relates to A. Opportunity costs refer to time, money, and other resources that are given up when a decision is made. Investment in a constructed facility represents a cost in the short term that returns benefits only over the long term use of the facility. C) Setting up a budget The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: 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. 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. 1. D) Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased He usually makes minimum payments on his debt and he has been late with three payments in the last year. Interest earned is calculated by multiplying the principle times the opportunity cost. Balance Sheet reports the financial position of the businessat a particular point of time. 9. Let us help you with your finance homework! D. Sally plans to quit her job and volunteer for local organizations. C) Achieve personal economic satisfaction. His credit rating is poor because of his late payments. Risks associated with most financial decisions are easy to measure. E) Future value of an annuity The actual cost of living increase for a household will be: Company A has a beta of 0.8, while Company B's beta is 1.6. 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. Governments, however, also have recourse to raising funds through the sale of their goods and services, and, because government budgets seldom balance, through borrowing. ... Find a news story that relates to the risks or rewards of borrowing. C) none of these answers are correct. Contributions to the plan 220,000. What type of computation would he use to determine the amount he will have for his purchase? A) interest-rate 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. Kraft, Inc. sponsors a defined-benefit pension plan. Assumptions. D) Improve your credit rating. D) A realistic budget for your current financial situation A question associated with the saving component of financial planning is: A. 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. 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. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. E) Obtain adequate insurance protection. C) 50 percent B. Which of the following would increase the interest rate for a loan? D) Present value of an annuity Inflation is most harmful to people with incomes expected to increase. Actual return on plan assets 180,000. D) Obtaining financial resources from employment, investments or ownership Intermediate goals are usually achieved within the next year or so. Service cost $ 200,000. 6. Patrick Guitman recently graduated from college with $20,000 in student loans and $5,000 in credit card debt. D) 75 percent 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. Mission statement: The mission statement is an overarching, timeless expression of your purpose and aspiration, addressing both what you seek to […] 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. 36. 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. Finance. 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 7. Financing of Constructed Facilities 7.1 The Financing Problem. Access answers to thousands of finance questions with simple, understandable explanations. It is a small but publicly, Case Study: The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. A financial plan is an informal report that analyzes past financial decisions. Do you have an adequate emergency fund? Financial Plans are only created by financial planners. The rising or falling of prices that causes changes in buying power is referred to as ____________ risk. When projected in the form of a budget A projection of the financial requirements and consequences of a plan. One component of pension expense is actual return on plan assets. E) Zero since the CPI does not measure consumer price changes Following components prices are increasing at a rate of 6 percent, the most important of by. 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