You Get Married And, in Doing Some Basic Financial Planning

question 105

Essay

You get married and, in doing some basic financial planning, your spouse suggests that the two of you open separate accounts so that if your total deposits exceed $250,000, your funds will be protected by FDIC.How would you respond to the suggestion?

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Definitions:

Current Asset Account

A balance sheet account that represents the value of all assets that can reasonably be expected to be converted into cash within one year.

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Inventory Collection

The process of organizing and managing products or stock that a company holds for sale to customers.

Inventory Payment

The financial transactions related to the purchasing of inventory, either on a cash or credit basis.