Historical exchange rates may be used for ________, while current exchange rates may be used for ________
A) fixed assets and current assets; income and expense items
B) equity accounts and fixed assets; current assets and liabilities
C) current assets and liabilities; equity accounts and fixed assets
D) equity accounts and current liabilities; current assets and fixed assets
Answer: B
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The ________ method of closing a sale attempts to bring to the table all issues of concern to the prospect but does not claim to be able to resolve the issues.
A. minor point B. probing C. alternative choice D. direct request E. benefit summary
The practices, behaviors, celebrations, and traditions common to people, organizations, and institutions are called ______.
a. cultural rituals b. cultural narratives c. cultural diversity d. cultural competence
Goodwill can be recorded as an asset when a(n)
a. business has above normal profitability compared to other businesses in its industry. b. business can determine that it has created customer goodwill and name recognition. c. offer is received to purchase the business at a price in excess of the value of the assets. d. business is purchased and payment is made in excess of the value of the net assets.
You want to buy a house, but you still need to pay your car loan of $15,000 over the next 3 years. Your annual income is $50,000 and the bank estimates that your monthly mortgage payments should not represent more than 28% of your monthly income. You have decided to use that percentage of your current income to repay your car loan and to save for the down payment on the house. In this way you will adjust your current monthly expenses to be ready to make the same monthly payments for 30 years. You estimate that you can get a fixed interest rate of 6.5% on a 15-year mortgage. Closing costs are estimated to be 3% of the loan value and you can invest at an average rate of 5%. If the interest on the auto loan is 8%, determine the following:
a) What is the monthly payment on the car loan? How much can you invest each month? b) If you decide to repay your car loan and invest the rest for the down payment at the same time, how much money will the bank loan you in five years? How much can you offer for the house? c) Is there any change in your answers for part (a) if you decide to pay off the car before you begin to investment for the down payment?