After preparing the Accounts, the Accountant declared a profit of Gh926,800 for the period ended 31st December 2018. the Human Resource Manager said 'if we made so much as profit, why is our cash balance only Gh40,000?' Give any Three reasons for this reference.

CENTRAL UNIVERSITY MBA - FINANCIAL PLANNING TEST 1 ANSWER ALL QUESTIONS - February, 2020 After preparing the Accounts, the Accountant declared a profit of Ghe926,800 for the period ended 31 December 2018. The Human Resource Manager said "if we made so much as profit, why is our cash balance only Gho40,000?' Give any THREE reasons for this difference. 2. State any three importance and three challenges respectively, of insurance to a business 3. In terms of models, write down any FOUR of the types of financial planning 4. Identify any THREE types of assets, giving examples under each case 5. A colleague needs your financial counsel so he could put his money into an in Write down any FOUR questions you are likely to ask this colleague before h e before he invests his money? 6. What would you look out for in a good, achievable financial plan? Give any TWO. 7. A Client has tasked you to prepare a financial plan for her. She requires to see the process you will use. Itemise the first FOUR of the processes. 8. Distinguish between the following pairs with respect to insurance business: a. Insurance and gambling Pure risk and speculative risk Insurable and uninsurable risk Liquidated and unliquidated damages What THREE main decision-points will you expect to see in a financial strategy? n terms of time horizon, briefly explain the types of financial planning. planation should include the tenure and the emphasis. hur Branch manager argues that 'since we are spending a lot on the repairs o ed assets, we shall not depreciate them'. He wants your opinion. received your company's bank statement from Fidelity Bank showing a bala 735,000 in your company's favour. But your office cash book shows that yo osed to have Ghc1,500,000 at the bank. Identify any THREE factors that ma this difference. down the six principles/laws of insurance and explain any one