Tutorial_L02_Q - using his Visa Card. The earrings cost...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CC3152 Principles of Financial Planning Tutorial 2 1 Tutorial Questions (Lecture 2) YOUR FINANCIAL STATEMENTS AND PLANS Discussion Questions 1. Describe the balance sheet, its components, and how you would use it in personal financial planning. 2. Differentiate between investments, real property and personal property. Name an example of each. 3. Chris Jones is preparing his balance sheet and income and expense statement for the year ending June 30, 2007. He is having difficulty classifying six items and asks for your help. Explain which, if any, of the following transactions are assets, liabilities, income, or expense items. Indicate the amounts to be recorded in the financial statements. a. He rents a house for $950 a month. b. On June 21, 2007, he bought diamond earrings for his wife and charged them
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: using his Visa Card. The earrings cost $600, but he hasn’t yet received the bill. c. He borrowed $2,000 from his parents last fall, but so far he has made no payments to them. d. He makes monthly payments of $120 on an installment loan; about half of it is interest, and the balance is repayment of principal. He has 20 payments left, totaling $2,400. e. He paid $2,800 in taxes during the year and is due a tax refund of $450, which he hasn’t yet received. f. He invested $1,800 in some common stock. 4. Why is it important to analyze and compare your budgeted figures to your actual figures? 5. Discuss the ways to overcome the monthly budgeted deficit in your annual cash budget for the year....
View Full Document

This note was uploaded on 03/17/2009 for the course AF 3152 taught by Professor Peggy during the Spring '09 term at Hong Kong Polytechnic University.

Ask a homework question - tutors are online