What is the simple interest on a $2200 loan with a 5.2% interest rate to be paid back in 3 years?
$343.20
100
What is a one-time investment of starting a business?
start-up investment
100
Employers should write a job _____________ for every position that needs filling.
Description
100
Bob buys $350 worth of products on account. Which account would be debited and and which account would be credited?
Debit to accounts receivable - Bob;
Credit to Sales
100
What is owner's equity?
It shows the value of the business. It shows how much the business owner could sell the business for. It is the value of all the assets minus the value of all the liabilities.
200
What is the difference between gross pay and net pay?
Gross pay is what you make before deductions (taxes, benefits, etc.). Net pay is what you take home (final amount on your check after deductions have been taken out)
200
What is the difference between debt financing and equity financing?
Financing through debt means borrowing money and agreeing to pay it back with interest; financing through equity means taking money in exchange for ownership in a business.
200
Employees are motivated by a ____________ atmosphere in the workplace.
positive
200
Which financial statement shows revenues and expenses for a given period?
income statement
200
If I were to inherit $50,000 when my parents pass away, what type of income is that?
windfall income
300
Why will social security soon be a problem for the United States?
population becoming older and living longer, so social security benefits will increase; will not be able to afford to pay full benefits; Social Security Trust Fund will run out
300
What is the main source of debt financing?
banks
300
What would make a performance-based reward effective?
If it is linked to a specific, achievable goal
300
Which financial statement shows assets, liabilities, and owner's equity on a specific date?
Balance Sheet
300
If Tommy traded his new shoes for Jerrod's coat, that is an example of what?
a barter
400
Using the Rule of 72, how long would it take for an investment getting a 6% return to double?
12 years
400
What are sources of equity financing?
angel investors, venture capitalists, family and friends
400
The following are 2 goals of what?
A) To point out how well the employee is meeting the job requirements and expectations.
B) To improve not only the employee's performance, but also the employer's performance.
performance evaluation
400
A business makes a loan payment to a bank. Which account is debited and which account is credited?
Account payable (or loan payable) is debited;
Cash is credited
400
Making an insurance payment is a debit to what and a credit to what?
debit to insurance expense;
credit to cash
500
How might you solve the social security problem
Answers vary - some may include: Higher retirement age; larger social security tax; no ceiling on taxable wages; make it a need-based benefit; invest Social Security Trust Fund in higher-risk investments associated with market growth
500
Start-up investment is:
start-up expenditures + emergency fund (1/2 of start-up expenditures) + reserve for fixed expenses
How do you determine how much to "reserve for fixed expenses"?
500
What are the benefits of promoting an existing employee when a higher-level job becomes available?
Shows recognition and respect for the employee; company's philosphy and values will be carried to the next level; saves resources that may be required to train someone new from outside the company
500
All revenue and expense accounts are classified as owner's equity accounts. Why?
They represent an increase or a decrease to the value of a business because money is either going into the business or coming out of the business.