Lorenzo Is Considering Two Banks for His Checking Account

question 8

Multiple Choice

Lorenzo is considering two banks for his checking account. Suny Bank requires a minimum deposit of $100 and charges a monthly fee of $8, plus 5 cents a check. Merchants Bank also requires a minimum deposit of $100, it charges a per check fee of 15 cents but no monthly fee. How many checks would Lorenzo need to write each month to make Suny Bank cheaper to use than Merchants?

• A) over 50
• B) over 60
• C) over 70
• D) over 80

Know the recommended duration for keeping tax records and supporting data.

Define and apply the SMART criteria to financial goal setting.

Understand discretionary income and its importance in financial planning.

Recognize common long-term liabilities.

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Definitions:

F.O.B. Shipping Point

A shipping term indicating that the buyer takes ownership and responsibility for goods once they are shipped, and is responsible for shipping costs.

Merchandise Inventory

Goods that a company intends to sell to customers that are considered as current assets on the balance sheet.

Freight Charge

The cost associated with the transportation of goods from one place to another.

Store Equipment

Fixed assets like shelves, cash registers, and display units used in the operations of a retail store.