Define the term compounding and explain why it is so important in the area of saving.
What will be an ideal response?
Compounding refers to interest earned on previously earned interest. Each time interest is added to your savings total, the new interest is computed on this total amount. The more frequent the compounding, the higher the rate of return. The rate of return you earn on the money you save should be compared with the inflation rate. If your savings account is earning 2 percent and inflation is 3.5 percent, you will experience a loss of buying power.
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All of the following payroll taxes are levied against the employer except
A) FICA taxes. B) federal unemployment taxes. C) state unemployment taxes. D) federal income taxes withheld.
A helicopter operated by a metropolitan police department crashes, injuring the two policemen aboard and damaging a home. It crashes in a minority neighborhood, prompting speculation that this is yet another example of the oft-repeated charge that the police department does most of its patrolling in that community. Which of the following is the best way of handling this crisis?
A. Don't do or say anything until you have all the facts. B. Announce that the department is looking into the possibility of suing the company making the helicopter. C. Issue a news release, describing the technical problem that caused the crash using the technical language of the department's consulting engineer. D. Meet with neighborhood groups, reminding them that the police have to patrol their neighborhood more than most because the crime rate in the area is the highest in the metropolitan area. E. None of the above.
A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold 360,000Sales revenue$2,412,000Variable manufacturing expense$1,170,000Fixed manufacturing expense$714,000Variable selling and administrative expense$414,000Fixed selling and administrative expense$82,000Net operating income$32,000 The company's break-even in unit sales is closest to:
A. 14,775 B. 346,087 C. 206,957 D. 118,806
Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts.
What will be an ideal response?