Financial Management Tutorial Questions

1. The financial choices we make impact our economy. Think of a recent item you purchased. What factors influenced your decision in making this purchase? Did this purchase impact your local economy? Explain why or why not.

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c. The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed.

Assets are to be recorded and valued based of the type of asset there are.

Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.

Estimates of future cash flows used to test the recoverability of a long-lived asset group should be made for the remaining useful life of the asset group to the entity.

C. developed for each item in the financial statements and derived from the categories of management’s financial statement assertions.

Charles Lee, a general in the American Revolutionary war, is a historic figure in American history. Serving under George Washington, Charles Lee participated in a number of battles. However, history says Charles Lee was treacherous to the cause, all the while that he was in command during that time; he was acting in bad faith toward the Americans. His influence in the army was, at all times, mischievous (General Charles Lee: Traitor of the American Revolution). To the British, Charles Lee was a traitor who turned on England to fight under George Washington. Due to Charles Lee’s treacherous actions against America, it would lead to his downfall in the

Rt - The net cash flow (-$100,000, $32,000, $32,000, $32,000, $32,000, $32,000) amount of cash, inflow minus outflow) at time t.

A1. Concerns in Budget Planning: Budgetary Items. Depreciation: Depreciation is “the method that the accountants use to allocate the cost of equipment and other assets to the total cost of products and services as shown on the income statement” (Berman, Knight, & Case, 2013). Depreciation is said to be based on the same fundamentals as accruals in that a company “wants to match as closely as possible the costs of products and services with what was sold” (Berman et al., 2013). The idea is to spread the cost of the expenditure over the useful life of the item over the course of time (Berman et al., 2013). Depreciation carries too much of an increase in year 9. Year 8 totals for accumulated depreciation is at

Adults haven’t fared any better. In a retirement income literacy survey conducted for The American College of Financial Services last year, 80% of the

5. If debt is used to finance this project, should the interest payments associated with this new debt be considered cash flows?

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The author has experience in dealing with financial data during his day to day job. Therefore he is comfortable with extracting relevant figures and come to a conclusion on his

asset. Hence, cash flow statement is very important in personal finance because it tells a person