Accounting

Title Accounting
Assignment type Other types
Discipline Accounting
Description 1. An effective personal financial plan must be adaptable to changing circumstances. Give two changes that may occur over the course of your life that may cause you to revise your personal financial plan. (2 points) 2. Inflation can be problematic for people on fixed incomes. Define inflation and explain this statement. (3 points) 3. Explain compound interest AND compute the balance in your savings at the end of each year if you earn 3% interest per year compounded annually on an original balance of $10,000. You need to compute the interest for Year 1, 2 & 3. Show all work (5 points) 4. How much time will it take your savings to double in value if the interest rate is 3%? What if the interest rate was 8%? Compute both answers by applying the “Rule of 72.” Show all work. (4 points) 5. Give one example of good financial behavior and one example of bad financial behavior. (2 points) 6. What is a resume? What is a cover letter? How do they differ? (3 points) 7. Explain net worth. (2 points) 8. Distinguish between the liquidity ratio and the asset-to-debt ratio? (Do not distinguish by merely stating the formulas) (4 points) 9. Given the following financial information, compute the liquidity ratio and the asset-to-debt ratio. Show all work including the formulas (4 points) Bank account of $600/Car of $4,500/Personal property of $5,000/Car loan of $3,000/Credit card of $1,200/Monthly expenses of 1,500 10. What are the two primary ways to pay income taxes in advance? (2 points) 11. Determine if item must be reported as income when calculating federal income taxes. (4 points) a). $25,000 won on a game show b). alimony received for ex-spouse c). $1,000 received from grandparent d). $500 from selling old furniture in yard sale