Home
Subjects
Textbook solutions
Create
Study sets, textbooks, questions
Log in
Sign up
Upgrade to remove ads
Only $35.99/year
Social Science
Economics
Finance
economics midterm study guide (RETIREMENT)finish
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
retirement
Terms in this set (19)
What is retirement?
financial security for post-working years
Why is retirement important?
- prevents you from become a burden for your children
-social security is not enough to live
-may reduce the taxable income you receive
What are the 5 retirement planning considerations
1. time frame to invest
2. risk tolerance
3. life upon retirement
4. estimated. expenses during retirement
5. type of account used to save
What are the 3 steps to retirement?
1. set long term goals
2. conduct a financial analysis
3. review assets
What are long term goals?
goals that may take a long time to work on or achieve
ex: buying a car, buying a house, planning a vacation
What does it mean to review your assets?
think about what you currently have to take into retirement
Should you rely on social security for your retiernment?
no
What are public pensions?
giving a part of money from there paycheck to their retirement.
What is a 401K plan?
a tax-deferred investment and savings plan that acts as a personal pension fund for employees
what is a salary reduction plan?
amount contributed to the plan is taken from your pre-tax earnings (gross pay) and set aside in this account
What does. tax- deferred mean?
you pay taxes when you withdraw the money from the account
What does 401K matching mean?
Employer may match the employees' 401(k) contribution up to a specific dollar amount or percentage of salary
What is a example of 401K matching? (annual salary: 35,000, employer matches 3%)
Your annual salary: $35,000
Your employer matches up to: 3%
If you contribute 3%
$35,000 x .03 = $1,050
Your employer matches the $1,050
what is a 403(b) plan?
Salary reduction plan offered by a tax-exempt organization such as a hospital or other non-profit organizations
What does individual retirement account mean (IRA)
(IRA) that allows individuals to direct pre-tax income, up to specific annual limits, toward investments that can grow tax-deferred
Depending upon your tax filing status and income, the contributions may be fully or partially _____________________________.
tax-deductible
What is Roth IRA?
annual contributions to a Roth IRA are NOT tax-deductible, but the earnings are tax-free
You can make annual contributions to the roth IRA even after _____________.
70 1/2
What is a rollover IRA?
-When you leave an employer with 401(k) or 403(b), you may want to move your assets from the account
-This way, you rollover the money and don't pay taxes on it
Other sets by this creator
vocab unit 3
8 terms
La Cultura
20 terms
bill of rights and the constitution
15 terms
spanish
59 terms
Verified questions
ACCOUNTING
Shutterbug Cameras had the following transactions during January. The partial chart of accounts for Shutterbug is shown here. $$ \begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{130 Supplies} & \text{410 Sales Returns and Allowances}\\ \text{215 Sales Tax Payable} & \text{ }\\ \end{array} $$ $$ \begin{array}{ll} \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{DIA Diaz, Arturo} & \text{NAK Nakata, Yoko}\\ \text{FAS FastForward Productions} & \text{SUL Sullivan, Heather}\\ \end{array} $$ Record the transactions on page 5 of the general journal in your working papers. $$ \begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold merchandise on account to Yoko Nakata for \$250 plus a}\\ \text{ } & \text{4\\% sales tax of \$10, Sales Slip 90.}\\ \text{3} & \text{Received \$50 in cash from the sale of supplies to Betty’s}\\ \text{ } & \text{Boutique, Receipt 201.}\\ \text{7} & \text{Sold \$300 in merchandise plus a sales tax of \$12 to Arturo}\\ \text{ } & \text{Diaz on account, Sales Slip 91.}\\ \text{12} & \text{Sold on account \$1,500 in merchandise plus a sales tax of}\\ \text{ } & \text{\$60 to FastForward Productions, credit terms 2/10, n/30,}\\ \text{ } & \text{Sales Slip 92.}\\ \text{13} & \text{Issued Credit Memorandum 20 for \$312 to Arturo Diaz,}\\ \text{ } & \text{which includes \$300 in merchandise returned by him plus }\\ \text{ } & \text{sales tax of \$12. }\\ \text{14} & \text{Received a check for \$260 from Yoko Nakata in full payment}\\ \text{ } & \text{of his account, Receipt 202.}\\ \text{15} & \text{Cash sales amounted to \$2,500 plus \$100 in sales tax, Tape 75.}\\ \text{15} & \text{Bankcard sales were \$3,000 plus \$120 in sales tax, Tape 75.}\\ \text{21} & \text{Received a check for \$1,530 from FastForward Productions}\\ \text{ } & \text{in payment of their \$1,560 account balance less a cash discount}\\ \text{ } & \text{of \$30, Receipt 203.}\\ \text{28} & \text{Granted Heather Sullivan a \$104 allowance for damaged}\\ \text{ } & \text{merchandise of \$100 plus a 4\\% sales tax of \$4, Credit }\\ \text{ } & \text{Memorandum 21. }\\ \end{array} $$ Compute the net amount of sales tax for the month based on these transactions.
ACCOUNTING
Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: $$ \begin{matrix} \text{ } & \text{April} & \text{May} & \text{June} & \text{July}\\ \text{Sales} & \text{\$ 600.000} & \text{\$ 900.000} & \text{\$ 500.000} & \text{\$ 400.000}\\ \text{Cost of goods sold} & \text{420.000} & \text{630.000} & \text{350.000} & \text{280.000}\\ \text{Gross margin} & \text{180.000} & \text{270.000} & \text{150.000} & \text{120.000}\\ \text{Selling and adminsitrative expenses:}\\ \text{Selling expense} & \text{79.000} & \text{120.000} & \text{62.000} & \text{51.000}\\ \text{Administrative expense} & \text{45.000} & \text{52.000} & \text{41.000} & \text{38.000}\\ \text{Total selling and administrative expenses} & \text{124.000} & \text{172.000} & \text{103.000} & \text{89.000}\\ \text{Net operating income} & \text{\$ 56.000} & \text{\$ 98.000} & \text{\$ 47.000} & \text{\$ 31.000}\\ \end{matrix} $$ b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February's sales totaled $200.000, and March's sales totaled$300.000. d. inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $126,000. e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is$84.000. f. Dividends of $49,000 will be declared and paid in April. g. Land costing$16.000 will be purchased for cash in May. g. Land costing $16.000 will be purchased for cash in May. h. The cash balance at March 31 is$52,000; the company must maintain a cash balance of at least $40,000 at the each of each month. i. The company has an agreement with a local bank that allows the company to borrow in increments of$1,000 at the beginning of each month, up to a total loan balance of $200.000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for April, May, and June. b. A schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. 3. Prepare a cash budget for April, May, and June as well as in total for the quarter.
ACCOUNTING
A listing of vendor accounts, account balances, and total amount due all vendors is a a. schedule of accounts payable. b. schedule of accounts receivable. c. schedule of vendors. d. schedule of creditors.
ACCOUNTING
Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Required: Determine the specific citation for accounting for each of the following items: 1. Accounts receivables from related parties should be shown separately from trade receivables. 2. The definition of cash equivalents. 3. The requirement to value notes exchanged for cash at the cash proceeds. 4. The two conditions that must be met to accrue a loss on an accounts receivable.
Other Quizlet sets
5's and 10's Practice Set
15 terms
chương 4
22 terms
Botanik
302 terms