10 terms

ACC 200 Final Exam Review

ACC 200 at BYU Final Exam Review cards
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What is the "main advantage" of a Traditional IRA compared to a Roth IRA?
With a traditional IRA, contributions are often tax deductible
What happens to you if you withdraw money from a Traditional IRA before age 59 ½ ?
The IRS will assess a penalty.
Are contributions to a Roth IRA tax deductible?
No
For an employee with a tax rate of 25%, how much is the short-term income tax savings that comes from a $3,000 contribution to a 401(k) account?
$750
How large was the annualized return on investment that was promised to "upgraded" members of 12daily Pro?
1,300%
"A fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors." - What is this statement describing?
A Ponzi Scheme
What is the "better estimate" of how much was lost by the investors in Bernie Madoff's scheme?
Between $12 billion and $20 billion
What is the goal of a portfolio manager for an actively-managed fund?
Beat the market
Over a 3-year time horizon, what fraction of actively-managed funds beat the S&P 500 Index?
9.7%
What is Baby Step #1 in Dave Ramsey's Seven Baby Steps to financial peace?
Put $1,000 in an emergency fund