1. Olivia is willing to pay $185 a month for four years for a car payment. If the interest rate is 4.9 percent, compounded monthly, and she has a cash down payment of $2,500, what price car can she afford to purchase? $10,549.07 $8,342.05 $10,961.36 $8,686.82 $8,533.84
2. Why is it necessary to follow GAAP for financial accounting, but not for managerial accounting? Why is managerial accounting so concerned with accurate cost tracking? (Answer these questions in two brief, but well-developed, paragraphs.)
3. American National Bank receives a check at 4 p.m. on Thursday afternoon. American considers the check to have been received on Friday morning, so they do not need to pass it to the next bank in the collection chain until Monday. This is called:
a. deferred posting. b. manipulating the timeline. c. delayed passage. d. Federal Reserve flexibility.