High Risk, Moderate Risk and Low Risk Investments

For those looking to invest, you should know that many investments can be categorized as being high risk, moderate risk and low risk. Investing is not difficult, but you should always put lots of thought and planning into it. It is also extremely important to educate yourself about the many different investments available to you so you can find those that fit best with your specific situation and lifestyle. Here are some tips regarding the three categories of investing.

Low Risk Investments

While low risk investments are usually very low key and rarely are extremely glitzy or publicized, they do offer conservative investors a way to save money for the short or long term without the risk involved that you find in other forms of investing. Low risk investments usually pay the lowest yields, but are far less volatile than many other types of investments. Low risk investments include money market funds, certificate of deposits and some types of bonds. Low risk investments are perfect for those that want to make sure there money remains safe and secure. While low risk investments don’t offer high returns, they do offer stability and security for those that can’t afford to lose money or would just like to avoid as much risk as possible. Expect low risk investments to pay out yields of 1% to 5% annually.

Moderate Risk Investments

Moderate risk investments are perfect for those that are interested in investing for the long term and would like to earn moderate yields. Moderate risk investments are usually certain kinds of stocks, bonds and mutual funds that pay handsomely over the long term. While generally riskier than saving money in a bank, for those that are looking to invest for the long term, historically speaking you will grow your money quite nicely. Moderate risk investments usually use the power of compound interest and time to create a nest egg from 10 to 40 years with regular savings. For instance, saving 1K per year at an interest rate of 10% for 30 years can return close to 200K. Moderate risk investments usually return yields of 5% to 12%.

High Risk Investments

High risk investments are those investments that if you are lucky can return huge yields, however the downturn is that they can be extremely volatile and in many cases instead of getting rich off your investment, you find yourself losing some or all of it. High risk investments include penny stocks, international stocks, some types of Forex trades, etc. The sky is the limit for returns, but many high risk investments- if considered a winner should return yields that range from 10% to 30%++.

Users and Uses of Financial Information

In every financial accounting textbook, the authors explain in detail about "Users and Uses of Financial Accounting." Information such as cash flow statements, income statements, and balance sheets are important documents that are kept to ensure that the company is recording everything correctly. The users of this accounting information are divided into two categories, internal and external users.

The internal users of accounting information are the managers who organize, operate and plan daily business routine. They are directly affiliated with the company and use administrative accounting, which includes in-depth reports used to determine financial strengths and weaknesses. For example, internal users would include management, finance, marketing, and human resources. An example of a human resource manager would be that he or she has to ensure the rights of their employees by using wage information along with other data. Important questions arise with internal users. A question for a marketing manager would include, "What price for an Apple I Pad will maximize the company's net income?"

External users are groups of individuals that are outside organizations, and they use accounting to make financial decisions. An example of an external user would include a creditor, who uses accounting to evaluate the risks of granting credit. Taxing authorities, investors, and customers are also external users. External users would receive limited financial information from a company such as financial statements. These statements are the backbone of financial accounting and they give the external users enough information to inform them of the company's economic position. Assets, liabilities, revenues, and expenses are of great importance to users of accounting information. For business purposes, it is customary to arrange this information in the format of four different financial statements; Balance sheet, income statement, retained earnings statement, and statement of cash flows.

The purpose of the income statement is to report the success or failure of the company's operations for a period of time. The income statement lists the company's revenues followed by it expenses. A key point to recall when preparing an income statement is that amounts received from issuing stock are not revenues, and amounts paid out as dividends are not expenses. Therefore they are not reported on the income statement. Retained earnings statement shows the amounts and causes of changes in retained earnings during the period. The time period is equivalent to the time covered on the income statement. Financial statement users can evaluate dividend payment practices by monitoring the retained earnings statement. Some investors seek companies that have a history of paying high dividends, while others seek companies that reinvest earnings to increase the company's growth.

The balance sheet is based on this equation: Assets = Liabilities + Stockholders Equity. This equation is referred to as the basis accounting equation. The balance sheet reports the company's assets, liabilities and owners equity. It is a financial window to the company at a specific point in time. Claims are divided into two categories: claims of creditors, which are called liabilities and claims of owners, which are called stockholders equity. On the balance sheet it lists the company's financial position as of a specific date in this order: assets first, then liabilities and stockholder's equity. A note to self about stockholders equity is that it is composed of common stock and retained earnings. Finally there is the statement on cash flows. The purpose of the statement of cash flows is to provide financial information about the cash receipts and cash payments of a business for a specific period of time. Users are interested in the statement of cash flows because they want to get a better understanding of what is happening to a company's most important resource. The statements of cash flows answer these following questions: 1) Where did cash come from during the period? 2) How was the cash used during the period? 3) What was the change in the cash balance during the period? The statement of cash flows also organizes and reports the cash generated used in the following activities: financing, investing, and operating. All businesses are involved with these three types of activities.

Financing activities is described as taking money to make money. The two sources of outside funds for corporations are borrowing money and selling shares of stock in exchange for cash. Investing activities involve the purchase of the resources company's need in order to operate such as sale of long-term investments, property, plant, and equipment. Finally there is operating activities. Once a business has the assets it needs to get started it can begin its operations. Operating activities convert the items reported on the income statement to cash.

In conclusion, the users of financial statements are people who use financial documents for a large variety of business purposes and their ability to make decisions using these statements helps them to succeed in the business world. Students have a chance to succeed in business if they have the knowledge of professionals who use financial statement analysis techniques and tools used on a day-to-day basis.

Pre Employment Screening: Applicant Tracking Solutions With This Feature

When hiring new employees, background checks are essential. More specifically, pre-employment background checks are used by many companies before they even consider hiring someone. The screening process for a potential employee will give you the appropriate information you need to see if they are the right fit for you and your company.

There are many bullet points under the pre-employment screening process that a recruiter professional might want to consider. The first is a credit report. Some employers, for one reason or another, decide to hire a candidate based on their credit report – but they can not just obtain one freely. According to the Fair Credit Reporting Act, before an employer obtains a credit report they must get written consent from the candidate. A copy of the credit report must be given to the applicant and they have the right to challenge the report. Bankruptcies, which can also apply to a pre-employment screening can appear on a candidate or employee's credit report. However, discriminating or hiring based on a person who has filed for bankruptcy is prohibited under the Federal Bankruptcy Act.

Education is often a factor when it comes to the hiring process. Even so, there are regulations when it comes to obtaining school records such as transcripts. Along with some state laws, the Family Educational Rights and Private Act are to remain confidential and require permission from the student.

Another facet of the pre-employment screening process are criminal records. A candidate's criminal past can also help inform a recruiting professional's decision. However, there are regulations that vary from state to state when it comes to hiring a candidate based on their criminal history so it would be wise to consult with a law professional so that everything is compliant.

The use of lie detector test in a pre-employment screening process is not allowed under the Employee Polygraph Protection Act. There are some exceptions such as security guard services, alarm system professionals, businesses that utilize armored car services and many who are involved in the pharmaceutical business.

Medical records also play a role in pre-employment screening . Again, an employer can not discriminate against a potential employee based on a persons physical or mental disability. This is prohibited by the Americans with Disabilities Act. However, an employer can ask about a candidate's ability to do the tasks of the job they are applying for. For example, if the applicant is applying for a job that requires heavy lifting, the employer can ask if they do have the ability to perform tasks that require heavy lifting.

There are many ins and outs when it comes to the pre-employment screening process. By knowing what to screen for and how to screen for it, a business can make their hiring process effortless.

A Guide to Help You Pick Your Next Piece of Furniture

Buying furniture does not have to be a stressful or painful activity. In fact, it can actually be a bit fun when you know how to distinguish the quality pieces from those destined for the dumpster. The following guide will hopefully demystify the inner workings and construction of furniture so you can focus on picking out the perfect color, print, and texture for your home.

Upholstered Furniture

Your furniture sets the mood, tone, and overall feel of your home just as your wardrobe conveys these same exercises about you. Upholstered furniture is perhaps the most telling sign of these characteristics as the use of color, design, and texture come into play more here than with any other type of furniture. Pieces that generally fall into the 'upholstered' category include chairs, sofas, love seats, sectionals, and sofa beds. This guide is designed to make your decision less daunting by eliminating some technical terms and giving you some insight into what lies benefit the cloths and cushions.

Woven Fabric Covers

Woven fabric means simply that the fabric is woven by a machine that interlaces two yarns running at right angles to each other. The most widely used group of decorative upholsteries sold in the United States consist of woven fabrics. These woven fabrics can be natural, such as linen and cotton, or man-made fibers like polyester and olefin. In most cases, fabrics are blends of various fibers like the popular cotton-polyester blend. The most popular types of weaves are as follows:

O Jacquard weaves are fabrics with differently colored yarns or fibers woven into highly decorative designs. These weaves are most often found in traditional furniture styles.

O Pile fabrics have loops or cut fibers standing up densely from the surface to form a three-dimensional texture. Depending on color and design, pile fabrics can be suitable for traditional or contemporary furniture.

O Textured fabrics are woven from yarns that have been processed to give them more bulk, crimp, stretch, or otherwise altered. Chenille is an example of a very popular textured weave. Textured fabrics are often woven to resembble antique, homespun cloth.

O Plain-woven fabrics consist of one color with their character resulting from the type of yarn or fiber used. Depending on the texture, plain weaves can be used on formal or informal furniture and with a variety of styles.

O Printed fabrics are first woven and then printed with a decorative design. Chintz and polished cotton are examples of fabrics that are often used for prints, although textured fabrics with blends of nylon, rayon, cotton, and polyester fibers are also often printed.

Non-Woven Fabric Covers

Non-woven fabrics are produced by the bonding and or interlocking of fibers. These fabrics can be made by mechanical, chemical, thermal, or solvent means, or with an adhesive, or any combination of these. Examples of non-woven fabrics include:

O Vinyl , which may or may not be laminated to a fabric backing. Vinyls are preferred on furniture that is subject to hard usage. Also called Naugahyde®, vinyl is often thought of as a substitute for leather, and can be printed in a variety of patterns.

O Flocked fabrics are made by gluing pieces of cut fibers onto a flat woven cloth base. These fibers form a three-dimensional surface much like pile. Flocked velvet is an example of this kind of fabric.

O Knitted fabrics are made by interlooping one or more sets of yarns. This is a reliably inexpensive way of manufacturing fabric.

O Suede-like fabrics , such as Ultrasuede® are often used in decorative upholstered furniture covers to give the look and feel of genuine suede, without using animal hides and usually at less cost.

Inner Construction

The construction and inner workings of an upholstered piece of furniture can be as mysterious as an episode of Murder, She Wrote (ask your Grandma). But hidden under the decorative fabric or cover lies the secret to the piece's overall function, comfort, and longevity. No need to call Angela Lansbury in order to solve this case, read on as we forget what makes your chair or sofa tick.

The frame is the single most important component in determining whether or not a piece of furniture is going to stand the test of time. You probably figured wood as being the most commonly used frame material, and this, of course, is true. But any old hunk of tree will not due if you plan on passing this wonderful chair, sofa, love seat, or whatever on to your children or grandchildren (they'll probably just put it in storage or sell it at a yard sale anyway ). Hardwoods, such as oak, alder, ash, beech and birch are what you're looking for in a frame. These hardwoods have a tighter grain and allow for screws, pegs, and nails to be set securely. Also, the best-made frames use wood that has been kiln-dried . This process consist of heating the wood in an industrial oven to remove excess sap and moisture. The process also makes the wood resistant to absorbing any outside moisture. If you're wondering what the problem is with moisture, I'll tell you. If you already know the answer to this, then skip to the next paragraph Mr. Egypt Smarty-Pants. Moisture can cause warping and swelling, can lead to loose joints and fastenings, and in severe cases can cause mildew or rotting, other than that, it's great.

The quality of the frame depends not only on the materials used, but how they're joined and held together. To create a strong, rigid frame, a variety of woods and laminates can be used in joints and for blocking and doweling.

O Joints are places where one piece of the frame meets another. These points of intersection need to be secured and reinforced with blocks and dowels to allow the frame to hold up over time.

O Blocking reiter to placing additional 'blocks' of wood behind or diagonal to joints and corners to help relieve the stress these areas encounter. Blocks also provide lateral support and create a larger area for screws and fasteners to set wood elements securely.

O Doweling is the process of drilling into both pieces of the joint and then placing a pin, or dowel into the hole, so further connecting the two pieces and adding extra support.

A quality chair or sofa will employ some type of inner spring system, usually in the back as well as the seat area. These systems add comfort, as you might expect, but they also work to take some of the stress off the joints of the frame. Here are some of the spring systems being used:

O The coil or cone spring system uses eight-way, hand-tied double cone springs to provide extra comfort and support. This technique involves fastening the cone springs tightly to the base and expertly tying their tops together with a strong cord. This is the only system that allows for side-to-side movement in addition to up and down movement. Hand-crafted quality comes at a price, though, and while this is widely considered the best spring system, it is also the most expensive.

O The sinuous wire spring is made in a continuous zigzag or "S" shape. These wires run parallel to each other and are quickly directly to the frame and to each other. Similar to this system is the formed wire spring, where the continuous wire is formed into rectangular bends and angles instead of the zigzag pattern.

O The grid suspension system is composed of a wire grid, sometimes covered with paper or plastic-coated wire, which has one side fastened directly to the frame. The other side is connected to the frame by helical springs.

O Some manufacturers use elastic webbing instead of wire springs. The strips of elastic usually intersect and weave together and are fastened directly to the frame. It is best to avoid furniture that uses this technique.

Arm yourself with this knowledge and make a more informed choice the next time you purchase furniture.