Ruby Is Expecting Her First Child Next Month and Would

question 75

Multiple Choice

Ruby is expecting her first child next month and would like to have $80000 saved for university education when the child turns 17.If Ruby can get a 6.6 percent annual return on the education savings for her child,approximately how much does she need to start saving at the end of each month once the baby is born?

• A)$2688
• B)$392
• C)$224
• D)$218

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Definitions:

Component-Disposition Gains

Profits realized from the disposal of a component or part of an asset, often a segment of a larger asset that is sold separately.

Discontinued Operations

Components of a business that have been disposed of or are held for sale and are not part of the company’s future operations.

Extraordinary Items

Unusual and infrequent gains or losses that are reported separately on the income statement to provide a clearer picture of a company's ongoing operational performance.

Accounting Principle

A general rule or guideline that prescribes the methodology for recording financial transactions and preparing financial statements.