Why is the time value of money an important concept in financial planning?
What will be an ideal response?
Answer: The time value of money allows us to see the relationship between time and the value of accumulated sums of money. We can clearly understand that starting a savings or retirement plan at a younger age will create much more wealth than waiting to start it at a later time. It also becomes clear that starting younger means saving a smaller monthly amount and having the option of skipping some months or years later if it becomes necessary to do so.
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________ is a projective technique in which respondents are presented with a number of incomplete sentences and asked to complete them
A) Word association B) Sentence completion C) Story completion D) Expression completion
An arbitrary monetary amount that determines an entity's legal capital is the ____________________
Fill in the blank(s) with correct word
The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows
Blankets Pillows Total Sales revenue $820,000 $300,000 $1,120,000 Variable costs 465,000 240,000 705,000 Contribution margin 355,000 60,000 415,000 Fixed costs 66,000 76,000 142,000 Operating income (loss) $289,000 $(16,000 ) $273,000 If Sweet Dreams can eliminate total fixed costs of $28,000 by dropping the pillows line, operating income will increase by $16,000. Indicate whether the statement is true or false
Cookie Co offered to sell Distrib Markets 20,000 pounds of cookies at $1.00 per pound, subject to certain specified terms for delivery. Distrib replied in writing as follows: "We accept your offer for 20,000 pounds of cookies at $1.00 per pound, weighing scale to have valid city certificate.". Under the UCC:
a. A contract was formed between the parties. b. A contract will be formed only if Cookie agrees to the weighing scale requirement. c. No contract was formed because Distrib included the weighing scale requirement in its reply. d. No contract was formed because Distrib's reply was a counteroffer.