Personal Finance - Lesson 2 Assessment
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12/31/23, 4:27 AM
Personal Finance | WGU-CGP-OEX
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Lesson 2 Assessment
6.857142857142857/8.0 points (ungraded)
How well do you know the information presented in Lesson 2? Answer these questions to find out. If you do well, you may be
ready to move on to the next lesson. If you are unable to answer the questions, you may want to go back to the lesson and
engage with the content.
Question 1
Nora’s car broke down, and the unexpected out-of-pocket cost to fix it was $1,000. Nora’s expenses now exceed her income for
this month.
What will Nora’s cash-flow statement for this month show?
Correct:
Because her income is less than her expenses, her cash-flow statement would show a deficit.
Question 2
Lulu wants to create a budget, but she does not know where to start.
What should a financial planner advise Lulu?
Correct:
A financial advisor would advise their client to record all expenses for 30 days to see exactly where the money is currently being
spent.
Question 3
How should credit card charges be handled within a personal budget?
A variable loss
A surplus
A net gain
A deficit
Record all expenses for 30 days to see how income is currently being spent
Use only a debit card for 30 days to easily track where money is being spent
Create budget categories and estimate monthly expenses and income
Document a reason for each expense, whether paid by check, cash, or card
Credit card charges should be recorded at the time of the transaction.
Record credit card transactions once the monthly statement is received.
Credit card charges are not recorded in a personal budget but instead in their own worksheet.
List credit card transactions in a separate section of the personal budget for tracking purposes.
Personal Finance
12/31/23, 4:27 AM
Personal Finance | WGU-CGP-OEX
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Correct:
Financial advisors advise clients to record credit card charges at the time of the transaction to have an accurate picture of
monthly spending.
Question 4
Diego wants to know if he has enough income and savings to cover all of his debt obligations.
How should Diego answer this question?
Correct:
Asset-to-debt ratio indicates if there are enough cash assets to meet the debt obligations. A high ratio is desired.
Question 5
Why do financial experts suggest that couples close redundant bank accounts?
Correct:
The more open bank accounts partners have the more fees they are likely to pay. Financial experts suggest keeping only
essential accounts.
Question 6
Nora wants to take her dream vacation to Ghana. She needs to save $5,000 for the trip, and she wants to travel in two years.
Which approach to savings should Nora consider to achieve her financial goal?
Correct:
Intermediate-term savings goals can typically be reached in two to five years, for example putting money away for an overseas
vacation.
Calculate the debt payments-to-disposable-income ratio
Calculate the asset-to-debt ratio
Calculate the debt-to-income ratio
Calculate the liquidity ratio
To improve their credit scores
To help pay off debt faster
To save money on banking and account fees
To facilitate the budgeting process
Compound
Short-term
Long-term
Intermediate-term
Personal Finance
12/31/23, 4:27 AM
Personal Finance | WGU-CGP-OEX
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Question 7
William creates a budget that estimates $1,750 for his summer vacation. He further breaks down the costs this way:
Hotel – $900
Public Transportation – $50
Restaurants – $500
Museum Pass – $100
Other Entertainment – $200
What is this list an example of?
Incorrect:
A budget exception occurs when a budget estimate differs from the amount of the actual expense.
Question 8
What is the term used to describe the amount of money that one brings home each pay period?
Correct:
Disposable income, that is, take-home pay, is the amount of money paid each pay period, after taxes and other expenses have
been withheld.
Question 9
What is used to estimate monthly income and expenses as part of the budgeting process?
A subordinate budget
A budget variance
A budget exception
A net surplus
Interest income
Discretionary income
Disposable income
Gross income
Intake-output calendar
Discretionary expenses fund
Cash-flow calendar
Revolving savings fund
Personal Finance
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9:36
3. Fees income
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December 31, 2014 and 2013
Dec. 31, 2014
Dec. 31, 2013
Assets
bloe
Current assets:
Cash.
Marketable securities
$ 500,000
$ 400,000
1,000,000
1,010,000
Accounts receivable (net)...
740,000
510,000
Inventories
1,190,000
950,000
000. Prepaid expenses.
250,000
229,000
Total current assets.
$3,690,000
$3,089,000
Long-term investments...
2,350,000
2,300,000
1
Property, plant, and equipment (net)
Total assets
3,740,000
3,366,000
$9,780,000
$8,755,000
Liabilities
Current liabilities
$ 900,000
$ 880,000
Long-term liabilities:
$ 200,000
Mortgage note payable, 8%, due 2019.
Bonds payable, 10%,…
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Chapter 3
Question 2 of 5
The ledger of Blossom, Inc. on March 31, 2022, includes the following selected accounts before adju
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Credit
Prepaid Insurance
$2,000
Supplies
2,000
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29,000
Unearned Service Revenue
$8,500
An analysis of the accounts shows the following.
1.
Insurance expires at the rate of $400 per month.
2.
Supplies on hand total $1,400.
3.
The equipment depreciates $300 per month.
4.
During March, services were performed for two-fifths of the unearned service revenue.
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Debit
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Required:
Calculate the amount recognised as expenses and amount disclosed as equity.
QUESTION 4
At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service
condition that the employee will still be employed in KAZA for three years. grant date,
KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019,
employee will be received cash by KAZA based on the value of the rights on that date. At the
end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have
appreciated in value. Fair value of the share appreciation rights for the five-years are as
follows:
Year
Share price RM
Dividend yield
%
Value of rights
RM
0
3.00
1
0.81
2017…
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6.4 Mortgage Financing
Jessica's mortgage payment, including principal, interest, taxes, and insurance, is $750 per month. She also has other
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O Asset ratio
O Debt payment ratio
O Debt ratio
O Mortgage debt service ratio
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Follow the format below for your journal entries:
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Debit Cash 500 Debit Accounts Receivable 500 and Credit Sales 1,000
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full on its maturity date.
What is the journal entry to record April 30, 2015 transaction?
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Note Payable and Accrued Interest
Fairborne Company borrowed $600,000 on an 8%, interest-bearing note on October 1, 2023. Fairborne ends its fiscal year on December 31. The note was paid with
interest on May 1, 2024.
Required:
1. Prepare the entry for this note on October 1, 2023. If an amount box does not require an entry, leave it blank.
2023 Oct. 1 Cash
Notes Payable
(Record issuance of note)
Feedback
2. Prepare the adjusting entry for this note on December 31, 2023. If an amount box does not require an entry, leave it blank.
2023 Dec. 31 Interest Expense
Interest Payable
(Record accrued interest)
Feedback
3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2023.
Among the current…
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An invoice for OMR 600 dated March 10th with the terms 5/15 EOM is recerved. The bill is paid on April Sth.
Find the net payment.
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O a. 570
O b. 30
Oc 510
O d. 90
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Jill bought a $730 rocking chair. The terms of her revolving charge are 2% on the unpaid balance from the previous month. If she pays
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Monthly
Outstanding
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balance due
2.0% interest
Reduction in
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number
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balance due
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Account
Debit
Credit
No.
Balances Balances
Cash
11
6,530
Accounts Receivable
12
2,100
Prepaid Expenses
13
700
Equipment
18
13,700
Accumulated Depreciation
19
1,100
Accounts Payable
21
1,900
Notes Payable
22
4,300
Bob Steely, Capital
31
12,940
Bob Steely, Drawing
32
790
Fees Earned
41
9,250
31
Wages Expense
51
2,500
92
Rent Expense
52
1,960
Utilities Expense
53
775
1.94
Depreciation Lxpense
54
250
14.96
Miscellaneous Expense
185
59
04.99
Totals
29,490
29,490
Determine the total liabilities for the period.
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18. Using the following information, complete the income statement, statement of retained earnings, and balance sheet for RN Painting for the month of March 2018. The business
began operations on March 1, 2018.
E (Click the icon to view the account balances.)
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ckground Layout-
Theme
Transition
2 13 r 4 .
5.
|.6 7
Example 1
Allison currently has a balance of $2,300 in her
checking account. She deposits a $425.33
paycheck, a $20 rebate check, and a personal
check for $550 into her checking account. She
wants to receive $200 in cash. How much will she
have in her account after the transaction?
Show work here:
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Students Home
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Ch. 7 Hmwk: Invoices, Trade &X
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BRECMBC9 7.I1.010.
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ASK YOUR TEACHER
PRACTICE ANOTHER
Calculate the net price factor (as a %) and net price (in $) by using the complement method. Round your answer to the nearest cent.
List Price
Trade Discount Rate
Net Price Factor
Net Price
$3,499.00
35%
$4
Need Help?
Read It
8. [-/1 Points]
DETAILS
BRECMBC9 7.J1.014.
MY NOTES
ASK YOUR TEACHER
PRACTICE ANOTHER
Calculate the trade discount (in $) and trade discount rate (as a %). Round your answer to the nearest tenth of a percent.
List Price
Trade Discount Rate
Trade Discount
Net Price
$4,500.00
$3,515.00
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Most of the time Matt is fairly good at saving money. However, sometimes he finds that he has little money by the end of the
month. One of his friends suggests that Matt evaluate his spending habits, while another friend suggests that Matt make a
budget. Matt decides to do both. Evaluate Matt's decision. Be sure to explain the benefits or drawbacks of doing only a
spending analysis or only budgeting.
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TUTORIAL QUESTION 5
QUESTION 1
On 1 January 2016, the management of ZAIDY granted an option for 3,000 shares to an
employee on condition that he stays in the employment of ZAIDY for three years. Also, the
option cannot be exercised till the share price has increased to RM20 per share by the end of
the third year.
The fair value of the option on 1 January 2016 was RM5 each and was estimated to rise to
RM6.50 each by 31 December 2018. The fair value is determined taking into consideration
that the share price will rise to more that RM20 each.
Required:
Calculate the amount recognized in the statement of profit or loss and the amount disclosed
as equity in the statement of financial position.
QUESTION 2
On 1 January 2017, SURDIN granted 100 share…
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9. MC.12.09
Research and Development
10. MC.12.10
Instructions
Chart Of Accounts
General Journal
11. RE.12.01.BLANKSHEET
Instructions
12. RE.12.02
Notting Hill Company incurred the following costs for R&D activities:
13. RE.12.03.BLANKSHEET
Material used from inventory
$15,000
14. RE.12.04.BLANKSHEET
Equipment purchased (with cash) for R&D with no other use
85,000
Depreciation on building housing multiple R&D activities
10,000
15. RE.12.05.BLANKSHEET
Wages and salaries paid to R&D employees
38,500
16. RE.12.06.BLANKSHEET
Required:
17. RE.12.07.BLANKSHEET
Prepare Notting Hill's journal entry(ies) to record its R&D.
18. RE.12.08
19. RE.12.09.BLANKSHEET
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Shonda Curry
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FIN-320-X5089 Principles of Finance 22EW5
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Homework: 3-1 MyFinanceLab Assignment
Question 9, P5-18 (similar to)
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(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $67,960 that he may invest.
He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.
The number of years it will take for Jack to win Jill's hand in marriage is years. (Round to one decimal place.)
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A Company uses a job-order costing system with a single plantwide
predetermined overhead rate based on direct labor cost. The company
based its predetermined overhead rate for the current year on total
estimated manufacturing overhead cost of 40% of direct labor cost. The job
cost sheet of Job2121 shows that the number of units in this job order is 60
units which incurred total of 90 labor-hours. This job consumed $40/unit of
direct materials cost and $90/hour of direct labor. What would be the total
?manufacturing cost for Job2121 approximately
0.80
$10,500 a O
$11,340 b O
$5.640 c O
$13,740 d O
None of the given answers
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he sale was reported to him on Form 1099-B.
avier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2019. Xavier sold his sha
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Xavier received the following Form…
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A Company uses a job order costing system and allocates its manufacturing overhead costs based on direct labor costs. The Company's
production costs for the year were: direct labor, $80,000; direct materials, $40,000; and factory overhead applied $20,000. The
predetermined overhead rate was:
O a. 4%.
O b. 50%.
Oc 200%.
O d. 25%.
O e. 400.%.
XYZ Co. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct
materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work In
Finished Goods
Cost of Goods Sold
Process
OMR 8,450 OMR
61,880
Direct materials
OMR 3,440…
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1. JBL expects to sell 7,000 units of wireless earbuds this year at P7,199.00 each. What is the projected
sales revenue?
2. ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is
10,000 units. What is the percentage change in sales volume?
3. The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur
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Ch 08: Assignment - Risk and Rates of Return
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Five years of realized returns for CCC are given in the following table. Remember:
1. While CCC was started 40 years ago, its common stock has been publicly traded for the past 25
A-Z
years.
2. The returns on its equity are calculated as arithmetic returns.
Office
3. The historical returns for CCC for 2012 to 2015 are:
2013
2012
2014
2015
2016
Stock return
13.75%
9.35%
16.50%
23.10%
7.15%
Given the preceding data, the average realized return on CCC's stock is
of CCC's historical returns. Based on this conclusion, the
The preceding data series represents
standard deviation of CCC's historical returns is
If investors expect the average realized return from 2012 to 2016 on CCC's…
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Ch 08: Assignment - Risk and Rates of Return
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For example, the continuous probability distributions of rates of return on stocks for two different companies are
shown on the following graph:
A-Z
PROBABILITY DENSITY
Office
Company A
Company B
-40
-20
0
20
40
60
RATE OF RETURN (Percent)
Based on the graph's information, which of the following statements is true?
O Company A has a smaller standard deviation
Company B has a smaller standard deviation
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