Given the Information Here, What Is the Annual Cost of Owning

question 68

Multiple Choice

Given the information here, what is the annual cost of owning? $\begin{array}{c}\begin{array}{l}\text{* Home value}\\\text{* Annual mortgage payments}\\\text{* Annual property taxes}\\\text{* Annual homeowner's insurance}\\\text{* Estimated maintenance and repairs}\\\text{* Growth in equity}\\\text{* Tax savings (mortgage interest and property tax) }\\\text{* Estimate annual appreciation}\\\end{array}\begin{array}{c}\$ 300,000 \\\$ 19,200 \\\$ 4,800 \\\$ 1,200\\1 \% \text{of home value}\\\$ 3,000\\\$2,800\\1.5 \% \text { of home value }\\\end{array}\end{array}$

• A) $17,900
• B) $28,200
• C) $38,500
• D) $300,000
• E) $338,500

Ability to identify and explain documents and procedures in managing cash and cash equivalents.

Knowledge of bank reconciliation processes and their importance for businesses.

Understand internal control violations and their potential impacts on an organization.

Comprehend the concept of liquidity and its significance for a company's operational capability.

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Definitions:

Prepaid Expense

Payments made for goods or services to be received in the future, considered as an asset on the balance sheet until used or consumed.

Accrued Liabilities

Obligations that a company has incurred, for which it has not yet paid cash or issued payment during the accounting period.

Direct Method

An approach in cost accounting used to allocate service department costs directly to producing departments without distributing service costs between service departments.

Comparative Balance Sheet

A financial statement showing the financial position of a company at two different points in time side by side, to facilitate comparison.