13- Anna has $30,000 to invest. She requires $50,000 for a down payment for a ho

Question

13- Anna has $30,000 to invest. She requires $50,000 for a down payment for a house If she is able to invest at 6%, how many years will it be accumulate the desired balance? a. 6 years. b. 7 years. C. 8 years. d. 9 years before she 14- If Jethro wanted to save a set amount each month in order to buy a new pick-up truck when the new models are next available, which time value concept would be used to determine the monthly payment? a. Present value of one. b. Future value of one. c. Present value of an annuity due. d. Future value of an ordinary annuity. 15- Which of the following is considered cash? a. Certificates of deposit (CDs) b. Money market checking accounts C. Money market savings certificates d. Postdated checks 16- Travel advances should be reported as a. supplies b. cash because they represent the equivalent of money c. investments. d. none of these. 17- All of the following may be included under the heading of "cash" except a. currency b. money market funds. c. checking account balance. d. savings account balance 18- Under which section of the balance sheet is "cash restricted for plant expansion" reported? a. Current assets. b. Non-current assets. C. Current liabilities. d. Stockholders' equity

Explanation / Answer

Ans. 13 (d) - 9 years

Explanation: If Anna invest today $30000 at interest rate of 6% p.a. then in Approx. 9 years her total investment value will approximately $50000. We can calculate simply by following table

Year Investment Value Interest(6% of investment value)

1 $30000 $1800

2 $31800 $1908

And so on...........

Ans. 14 (d) Future Value of annuity.

I think it shoud be future value of annuity.. language of question is not proper.According to question he will save money every month to buy a truck.it means we consider the future value of such amount.

Ans. 15 (b) Money Market cheking Accounts

Money market accounts have a great deal in common with saving accounts.As you say they are considered cash equivalents in that entire balance of your account is available pn demand at any time.

Ans. 16 (d) None of these

Travel Advances are considered as Prepaid expenses and recorded as current assets

Ans. 17 (b) Money Market fund

Money Market fund shall not include in the heading Cash. It shall be recorded as Investment

Ans. 18 (a) Current Assets

Cash Restricted for plant expansion should be reduced from Cash balance in current assets

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.