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Learning Activity 2: Attempt review
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Question 1
Correct
Mark 2.00 out of 2.00
Match the topics in the first column with the correct descriptions in the second column below (2 marks)
The amount of risk that an entity is willing to accept, or retain in order to achieve its objectives
Using risk appetite on a more micro level to set acceptable levels of variation around risk appetite.
The chance of something happening that will have an impact on an individual’s or a business’s
objectives.
Risk capacity relates to the amount an organisation is capable of losing before it endangers its own
sustainability.
The guiding principles an organisation uses in relation to its management of risk and the detail of
how these principles will operate in practice.
The policies, systems and controls through which an organisation can establish, set risk limits and
monitor its risk appetite
One of the risk assessment tools that a lender may use to establish the probability of a borrower
defaulting
The threat that a risk poses after considering the current mitigation activities in place to address it
A tool often graphically representing Likelihood and Impact, that can help companies identify and
prioritise the risks associated with their business
Risk Appetite
Risk Tolerance
Risk
Risk Capacity
Risk Management
Risk Appetite Framework
Credit Risk Analysis
Residual Risk
Risk Map
Your answer is correct.
15/11/2023, 14:48
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Question 3
Correct
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Question 4
Partially correct
Mark 0.50 out of 1.00
A lender receives a loan application from a business owner. The lender may seek to mitigate their risk exposure through one or
more techniques. Which would not be one of those?
a.
Using the borrower's property as collateral
b.
Insisting on third party guarantees
c.
Using each principal in the business as a guarantor
d.
Request that the business segregate their assets before loan approval
e.
Requiring a loan covenant
f.
Request weekly DSCR reports from the borrower
A licensed broker is required to report significant issues and incidents according to organisational policies and procedures. If a
broker has identified a significant compliance breach by one of his credit representatives, how would he report this?
a.
Complete ASIC’s Reportable Situation Form
b.
Notify the Australian Financial Complaints Authority Free, as the ombudsman’s role is to investigate and resolve issues
c.
A significant compliance breach will be dealt with by The Australian Prudential Regulation Authority (APRA) as they are an
independent statutory authority that supervises institutions across banking
d.
Complete a Breach Report and lodge with the industry body with whom the credit representative is registered
A negative consequence of a risk occurring, with impact on stakeholders or assets, would be unlikely to include which 2 of the
following:
a.
Environmental damage
b.
Decline in profits
c.
Increase in regulator scrutiny
d.
A competitor leaving the market
e.
Increase in clients seeking high LVR loans
f.
Implementation of increased risk controls
15/11/2023, 14:48
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Question 6
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Question 7
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Credit Risk and the probability of a default is one of the main risks for lenders. What is one of the risk assessment tools that a lender
may use to establish that probability.
a.
A Credit Risk Analysis
b.
Increase to LMI premiums
c.
A Physical Risk Analysis
d.
Using a Credit Analyst as a contractor for difficult borrowers
e.
Inviting all stakeholders to annual meetings
From a lender’s point of view, a default is said to occur when
a.
A borrower is unable to meet their loan repayment obligations
b.
A business borrower has consistently met their loan repayment obligations
c.
An individual borrower is able to meet their loan repayment obligations.
d.
The lender projects the borrower’s risk of repayment obligations for the next 5 years
e.
When the credit exposure of a loan is transferred to a second party
Not all identified risks will require intervention. Some risks will just require timed review and monitoring. For an established business,
which of the following would be considered the highest risk in relation to potential competitors who may enter their market and
produce a competitive product?
a.
A market with no barriers to entrance and very low product costs
b.
A market with low start-up costs for market launching and easy access to markets
c.
High start-up costs and limited access to markets
d.
High barriers to entering the market
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Analysis of Receivables Method
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Question 1
What is the Payback Period for the following investment?
Year
1
2
3
4
5
O a. 3.77
Ob. 3.73
Oc. 3.89
Od. 3.96
Cash Out
$ (1,600,000)
(710,000)
Cash In
550,000
580,000
610,000
640,000
670,000
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QUESTION 2- Time Value of Money
Calculate the amount of money that will be in cach of the following accounts at the end of the
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со
Compounding Period
(Compounded every
Months)
12
Annual
Deposit
Amount
Interest
Period
Ассount
Deposited
RM 1,000
Rate
(Years)
Jawa Scottish
Mawar Berduri
10 %
10
95,000
12
The Piranha
8,000
120,000
30,000
15,000
12
Lea Rose
8.
3.
Bunga Larangan
Lin Suhaimi
10
6.
12
4
3
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Stock B
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0.25
3%
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0.4
7%
0.5
20%
10%
0.3
10%
0.25
25%
0.3
0.2
15%
0,15
15%
30%
Submission due date: 26 NOVEMBER 2020
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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MTH101 B01 - QUANTITATIVE LITERACY (Fall 2021 Credit Courses)
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You deposit $6000 in an account earning 5% interest compóunded monthly. How much will you have in the
account in 15 years?
$ 8,540.57
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Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan
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4
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations.
Round your answer to the nearest cent.
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Review the FVAN definition and its equation.
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Models B: Lesson 2 - Other Forms of Compensation
Target due: 1/14/21 16.66%
A O 3) Choose the correct answer.
-Maribel is offered a job as a paralegal at an annual base salary of $47,000. In
addition, the company will pay the following benefits: a retirement contribution that is
10.5% of Maribel’Ms base salary, disability insurance totaling $338, medical
insurance totaling $6,500, and a year-end bonus of 17% of her base salary. What is
the annual value of this job to Maribel?
O $47,000
O $66,435
$58,773
$66,763
$58,435
口
O 4) Choose the correct answer.
M
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Proble X
P-F:2-30A. Journalizing transactions, posting journal entries to T-
accounts, and preparing a trial balance (Learning Objectives 3, 4)
15
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New
Ann Simpson started her practice as a design consultant on September 1,
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3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024.
30
Received $48,000 cash and issued common stock to Simpson.
Purchased office supplies, $1,200, and furniture, $1,300, on account.
Performed services for a law firm and received $1,900 cash.
X
Paid $18,000 cash to acquire land to be used in operations.
Performed services for a hotel and received its promise to pay the $1,200
within one week.
Paid for the furniture purchased on September 4 on account.
Paid assistant's semimonthly salary, $1,500.
Received cash on…
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Installment Loan
How much of the first
payment for the
installment loan
18% shown in the table will
Principal
$2000.00
Term Length
2 years
Interest Rate
go towards principal?
Monthly Payment
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C. $111.00
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Required information
[The following information applies to the questions displayed below.]
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a
useful life of five years and no salvage value. The company's discount rate
income in each of five years as follows:
$ 2,735,000
1,000,000
Sales
Variable expenses
Contribution margin
Fixed expenses:
Advertising, salaries, and other fixed out-
of-pocket costs
Depreciation
Total fixed expenses
1,735,000
$ 735,000
595,000
1,330,000
Net operating income
$ 405,000
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.
14. Assume a postaudit showed that all estimates including total sales) were exactly correct except for the variable expense ratio,
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Payback period
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Homework 11
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Question 8
Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5
years, you leave the money, without making additional deposits, in the account for another 23 years. How
much will you have in the end?
$
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Proceeds from Notes Payable
On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $48,000. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming the note is discounted at 6%.
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The proceeds equal the cash initially received. Proceeds represents how much in value the borrower is walking away with in cash on
merchandise.
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The future value of $200 received
today and deposited at 8 percent
compounded semi-annually for
three years is
Select one:
a. $352
b. $158
C. $253
d. $380
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Exercise #1: PROBLEM SOLVING
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those watches from a supplier at P400 each. The business paid utilities amounting to P40, 000,
miscellaneous P30, 000, internet connection P10, 000 and interest expense of P50, 000 for January.
How much is the profit/ loss for the period?
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You get a personal loan of $5,000 with 12% simple interest too be paid over 30 months. What is your monthly payment?
O $150.00
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P9-31A Accounting for notes receivable and accruing interest
Learning Objective 4
1. Note 3 Dec. 18, 2016
Cathy Realty loaned money and received the following notes during 2016.
Note
Date
Principal Amount
Interest Rate
Term
(1)
Jun. 1
$ 18,000
8%
1 year
(2)
Sep. 30
24,000
12%
6 months
(3)
Oct. 19
10,000
9%
60 days
Requirements
1. Determine the maturity date and maturity value of each note.
2. Journalize the entries to establisheach Note Receivable and to record collection of
principal and interest at maturity. Include a single adjusting entry on December 31, 2016,
the fiscal year-end, to record accrued interest revenue on any applicable note.
Explanations are not required.
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PEARSON
ALWAYS LEARNING
Card Name (APR %) Existing Balance Credit Limit
$3,000.00
$2,500.00
$475.00
Mark2 (6.5%)
Bee4 (10.1%)
$1,311.48
Savings vs. Debt Portfolio
You have $400.00 each month to payoff these 2 credit cards.
You decide to pay only the interest on the lowest interest card
and the remaining amount to the other card. Complete the
following two tables to help you answer questions 1-3.
Higher-Interest Card (Payoff Option)
12345678910
Month
Principal
Interest accrued
Payment (on due
date)
End-of-month
balance
Lower-Interest Card
l1234567891o
Month
Principal
Interest accrued
Payment (on due
date)
End-of-month
balance
1) How long does it take to pay off the higher interest card?
2) What is the amount of the last payment? Why?
3) At the end of the month that you pay off the higher-interest
card, after you have started to pay down your debt on the
lower-interest card, what is the balance of the lower-
interest card? Why?
Complete the following two tables to help you answer…
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Topic 4 Homework
Close Date: Wed, Sep 29, 2021, 11:59 PM
Question 9 of 15
If the margin on an item is 22.00%, calculate the rate of markup of the item.
Round to two decimal places if necessary
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