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final review
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72
Accounting
12th Grade
12/06/2010

Additional Accounting Flashcards

 


 

Cards

Term
Choose the statement which best describes the relationship between values and financial decisions.
Definition
Values are influenced by family,friends and experiences,they affect a person's financial decision
Term
A well written financial goal includes the following elements:
Definition
specific,measurable,attainable,realistic, and time bond
Term
How are financial decisions influenced by a person's interpretation of needs and wants?
Definition
influenced by needs and wants because they guide a person's choices
Term
A person would choose to an interest inventory test to:
Definition
learn about possible career areas related to one's interests
Term
Basic wealth protection, wealth accumuulation, and distribution are the three stages of:
Definition
An individual's financial life cycle
Term
Deductions taken from a person's paycheck include:
Definition
federal withholding tax, state withholding tax, and FICA
Term
when starting a new job, what form(s) must an employee complete to receive a paycheck?
Definition
W-4 and I-9
Term
Using the rule of 72, what rate of return is needed for a person to double an investment in six years?
Definition
12%
Term
what correctly decribes a financial statement used in a financial plan?
Definition
an income and expense shows assects, liabilities, and net wroth on a particlar date
Term
According to the time value of money, the power of time benefits an individual because:
Definition
money paid out or received in the future is not equivalent to money paid or received today
Term
The steps to a spending plan process include:
Definition
setting financial goals, organizing, deciding, implementing, controlling, and evaluating
Term
write a true statement about and/or investing?
Definition
savings are generally considered liquid and easily accessible
Term
What do financial experts recommend an individual have for emergencies ina savings account?
Definition
3-6 months of income
Term
what can a person do to work toward the goal of buying a house?
Definition
create a financial plan to save for the down payment and other housing cost; this probably means cutting expenses to save money.
Term
Sally won $150 cash for winning the school science fair. she wants to save the money for her senior trip in five years. what type of cash management tool is the best option?
Definition
A certificate of deposit because it would be for a specified time length
Term
write a true statement that describes a housing lease?
Definition
the terms of the lease agreement are not legally binding
Term
a customer is protected against loss at a financial instution if it is insured by the:
Definition
FDIC, SAIG, or NCUA
Term
what is true about loan variables?
Definition
the larger the down payment, the lower the principle
Term
A vehicle is considered a "lemon" if:
Definition
the defect remaind unfixed after four repair attempts
Term
Tom has liability insurance for his truck. what type of covrage this include if gets in an accident?
Definition
injuries to the other driver
Term
comparison shopping for a vehicle is necessary because:
Definition
the vehicle prices is not the only cost involved with owning a vehicle
Term
characteristics of a new vehicle include:
Definition
Warranty
Term
what services are available at a credit union?
Definition
share accounts and share draft accounts
Term
electronic banking allows customers to:
Definition
preform transaction via electronic fun tranfers 24 hours a day
Term
what should you not to do on the atm plastic card?
Definition
do writethe pin down in case it is forgotten
Term
what is an example of installment credit?
Definition
bank credit card
Term
what is an example of non-installment credit?
Definition
borrowing from a friend, personal loan from a friend, department store cards
Term
identify how a young adult can begin a good credit rating.
Definition
pays off loans as rather than quickly
Term
an example of identify theft is:
Definition
an individual uses another's persnal info to open an account
Term
if a consumer is a victim of identity theft, what should they do?
Definition
call all major credit bureaus to request a "fraud alert" be put on file
Term
describe the relationship between insurance and risk.
Definition
insurance is an arrangement between an individual and an insurer to protect the indiviual against risk
Term
when referring to investments what is the between risk and return?
Definition
higher risk indicates higher returns
Term
what is the purpose of a diversified portfolio?
Definition
an individual decreases his/her risk
Term
an advantage using credit is:
Definition
not having to carry large amounts of cash
Term
What type of information is not found on a consumer's credit report?
Definition

medical information

 

Term
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
Definition

insure federally charted commerical bank against loss

Term
What is a checking account?
Definition
paper checks or debit cards are used to withdraw money deposited into the account pay for items
Term
which of the following is a characteristic of electronic banking?
Definition
24 hours, fast and paperless, variety of methods available
Term
what is savings?
Definition
the portion of current income not spent on consumption
Term
what does the 70-20-10 rule represent?
Definition
70% of income is spent, 20% of income is saved, and 10% of income is invested
Term
what is the difference between a savings account and a money market deposit account?
Definition
money market deposit accounts haved tiered interest rates.
Term
Using the "rule of 72," how many years will it take to double one's money at an 8% rate of return?
Definition
9
Term
what is compound intreset?
Definition
the intrest earned on both interest and principle.
Term
what is inflation?
Definition
the steady rise in the general level of a market basket of goods
Term
what are the types of taxes?
Definition
progressive and regressive
Term
which is necessary step in making an career decision?
Definition
self-evalution of aptitudes and interests research of future career opportunities development of personal goals
Term
a career is defined as:
Definition
a commitment to a profession which requires continued training
Term
a job is defined as:
Definition
an employment position obtained to earn money
Term
what is credit?
Definition
goods,services, or money received in exchange for a promise to pay a define sum of money at a future date
Term
what is a charateristic of installment credit?
Definition
equal payments billed on a regular basis
Term
what are the advantages of credit?
Definition
for emergencies ,convenience, make reservation
Term
what is a tip to remember when establishing a good credit reputation?
Definition
pay off loans as desired
Term
why should an individual comparison shop for a credit card?
Definition
to know key terms and condition to avoid hidden cost decrease the cost of borrowing
Term
which type of credit card is defined as an account which allows for a customer to make credit card purchases at a particular retailer such as the buckle or old navy?
Definition
retail credit card
Term
which type of credit card is defined as an account similar to bank credit cards except the entire balance must be repaid in 30 days?
Definition
travel and entertainment
Term
A credit report could be characterized as:
Definition
a record of a consumer's credit history
Term
who is a cosigner?
Definition
a person guaranteeing a loan for the original borrower
Term
name three variables that are included in an automobile loan?
Definition
down payment, annual percentage rate, time period
Term
a typical lender option for purchasing is an automobile is:
Definition
commercial banks
Term
consumer  rights must be defined according to what consumer protection law?
Definition
truth in lending act
Term
the truth in lending act requires lenders to include what three things?
Definition
lender can advise a good deal as long it is available  to at least one consumer. ads need to include ther terms. if goods/ services are to be paid in 4 installments.
Term
what is deductible?
Definition
the amount paid by the policy holder for the initial portion or a loss
Term
what type of coverage is available for automobile insurance?
Definition
physical damage insurance
Term
what is the minimum amount of insurance required by law for automobiles?
Definition
liability insurance
Term
what does a liability insurance limit 25/50/10 mean?
Definition
$25,000 per person bodily injury limit, $50,000 per accident bodily injury limit, and $10,000 per accident property damage liability limit
Term
what is a way for consumers to save money when purchasing automobile insurance?
Definition
shop around, buy appropriate coverage, take advantage of discounts
Term
what is NOT a characteristic of a new vehicle include:
Definition
pre-owned
Term
what is identity theft?
Definition
someone wrongfully acquires and uses a consumer's personal identification.
Term
what is a safety tip for shopping safely online?
Definition
use a credit card
Term
what is insurance?
Definition
an arrangement between an individual and an insurer to protect the individual
Term
what risk?
Definition
uncertainty about a situation's outcome
Term
what does comprehensive physical damage insurance NOT cover?
Definition
collisions with other cars
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