FINANCIAL ACCOUNTING

Financial Accounting



Raising Individual Financial Awareness

Part a)

An investment is an outlay of money or other fluids of financial resources, in order to obtain net profits in the future. People should invest in such assets which will in future benefit them in term of money. Fred Murray (the musician) is advice to invest his money in the following available options that will offer him a good return along with safe investment.

Investing in Property

Investing in real estate is profitable for centuries, not only because such property can be sold profitably at a time when property prices are high or when it will gain in value, but also because it successfully you can earn on its lease. According to the definition of a temporary rent the property to use a specific person or institution, of course, for an appropriate charge. The amount of rental prices is clearly established prior to entering into a binding agreement. Hot off the rent collection is also charging of a deposit. This amount is somewhat indemnifying the owner against losses relevant to the nonperformance of the contract by the tenant - mainly the solution ahead of time. The lease is the most commonly concluded for a specified period of time; much rarer are contracts of indefinite duration. The most common rental period is one year, although of course it all depends on agreement between the tenant and the owner, you might as well rent a property for a month or even two weeks, if both parties to such a system responds. However, it is essential to determine all the details in advance to avoid unnecessary misunderstandings (www.imf.org).

Investment horizon of long-term

By investing in the long run you will get higher yields. The Guaranteed Investment Certificates (GICs) are a safe alternative to long-term investment. Your initial capital is guaranteed and you get a competitive interest rate. If you are willing to forego principal and guaranteed returns, you can opt for certain types of investment funds whose earnings potential is higher. Meet different investment objectives, these investment vehicles cover a wide spectrum, from conservative funds that focus on security to fund aggressive growth (Reilly F & Keith C., 2008, pp. 121).

Gold as an investment

Gold is a safe haven. Especially in times of financial crisis, many investors have turned back the investment in gold. So the price of gold had in the course of UK and the resulting punctured the Pound crisis in May 2010 the first time the limit of £1,000 for the listing troy ounce (31.1035 grams) in Pound. Who wanted to buy in August 2011 to sell a gold bar or had to pay £1,900 for an ounce, or could collect as much money. The financial crisis unsettled the investors' money. Many asset classes proved to be highly overvalued, while their owners have lost much of its wealth (Cameron, 2005, pp. 3).

Investment Risk Free Rate Bond

The current uncertainty about the global economy provides a strong incentive to stay away from stock market investments, including historical records down ...