Describe how interest rates affect your personal budget, income statement, and balance sheet. What account groups do they affect? Give two specific examples
What will be an ideal response?
Answer: This is a subjective answer. Interest rates affect the income and expense groups. On the income side, interest earned on an account varies. The interest rate affects the ability to purchase a home or car, or obtain a student loan.
You might also like to view...
The Maryland Cheese Company completed the flexible budget analysis for the second quarter, which is given below
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units 12,870 0 12,870 1,070 F 11,800 Sales Revenue $62,740 $1,290 U $64,030 $4,020 F $60,010 Variable Costs 27,610 660 U 26,950 $1,680 U 25,270 Contribution Margin $35,130 $1,950 U $37,080 $2,340 F $34,740 Fixed Costs 34,300 280 U 34,020 $0 34,020 Operating Income/(Loss) $830 $2,230 U $3,060 $2,340 F $720 Which of the following statements would be a correct analysis of the flexible budget variance for fixed expenses? A) decrease in sales price per unit B) increase in variable cost per unit C) increase in sales volume D) increase in fixed costs
According to the Entertainment Software Association, the average age of "gamers" (those that routinely play video games) is 30 years old. A random sample of 33 gamers people had an average age of 32.7 years old
Assume that the population standard deviation for the age of gamers is 4.6 years. Use a 90% confidence interval to test the validity of this report and choose the one statement that is correct.A) Because this confidence interval does not include 30 years, the report by the Entertainment Software Association is not validated. B) Because this confidence interval does not include 30 years, the report by the Entertainment Software Association is validated. C) Because this confidence interval does include 30 years, the report by the Entertainment Software Association is validated. D) Because this confidence interval does include 30 years, the report by the Entertainment Software Association is not validated.