- Study guides, Class notes & Summaries

"A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the - CORRECT ANSWER=> better off financially the person is" "After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA - CORRECT ANSWER=> tax and penalty free" "Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This ...

"Interest earned on interest is known as: A: Simple interest B: True interest C: Compounded interest D: Variable interest - CORRECT ANSWER=> C: Compounded interest" "Money received today is worth more than the same amount of money received sometime in the future is: A: The Rule of 72 B: The time value of money C: Not true D: Investing - CORRECT ANSWER=> B: The time value of money" "A person buys a flat screen, plasma, theater-like televisi...

FINANCIAL LITERACY EXAM 1 UPDATED QUESTIONS AND VERIFIED ANSWERS The next best choice you could have made, but did not make. - CORRECT ANSWEROpportunity Cost Some opportunity costs for the Robinsons. - CORRECT ANSWERHaving less time to relax, less time to go out to dinner, and less money to spend.

FAR-1C7-Consolidated & Combined Financial Statements Exam Questions and Answers 100% Pass FAR-1C7-Consolidated financial statements are typically prepared when one company has a controlling financial interest in another, unless: - Prior to FASB ASC 810-10-15, some parent companies would defend their decision to not consolidate certain subsidiaries by arguing that the nature of the subsidiary's business was too unlike that of the parent. For example, the subsidiary might be a financial...

CONSOLIDATED FINANCIAL STATEMENTS EXAM QUESTIONS AND ANSWERS 100% PASS How acquisition-related costs (direct+indirect) are treated? - Finder`s fee, legal fee, consulting, general+administrative costs are expensed as incurred. DR. Expense accnt How direct issue costs of equity are treated (stock registration, issuance, SEC filing fee) - Treated as a direct reduction of the value of the stock issued. DR. APIC accnt How are debt issue costs recognized in the B/S? - Recognized as direct de...

DC Financial Literacy Midterm Test Questions with Correct Answers Graded A+ Which of the following is most likely to represent a fixed rate, secured debt? - Answers A dealer-financed Auto Loan Each of the following financial products will help you build a credit history EXCEPT - Answers Debit Card What is the advantage of paying your credit card balance in full each month? - Answers You avoid paying any interest and fees Why is it more difficult to get out of debt when only paying the minimu...

Chapter 2: Consolidation of Financial Information UPDATED ACTUAL Exam Questions and CORRECT Answers Business Combinations using the Acquisition Method embrace a *fair-value* measurement attribute. Adoption of this attribute reflects what? - CORRECT ANSWER - FASB's change of emphasis from Cost Principle [purchase price] to Fair Value Measurement When does the consolidation of financial information into a single set of statements become necessary? - CORRECT ANSWER - *When the ...

Chapter 2: Consolidation of Financial Information UPDATED Exam Questions and CORRECT Answers According to the acquisition method, the acquiring firm records all assets acquired and liabilities assumed in a merger transaction at their individual acquisition date fair values. - CORRECT ANSWER - TRUE Among the items recognized by Tesla from the Grohmann acquisition included ___________ assets such as developed technology, software, customer relations, and the Grohmann trade name...

Chapter 2: Consolidation of Financial Information ACTUAL Exam Questions and CORRECT Answers When financial statements represent more than one corporation, we refer to them as - CORRECT ANSWER - Consolidated Financial Statements Subsidiaries - CORRECT ANSWER - companies controlled by a parent company Parent company - CORRECT ANSWER - A company that controls or owns another company or companies