Benjamin Is Studying to Be an Accountant and Wants to Go

question 69

Multiple Choice

Benjamin is studying to be an accountant and wants to go to law school because tax lawyers make a lot of money. He thinks that lots of money and an expensive house and car will make him happy. Based on what the authors of your text report on affective forecasting, how good is he at predicting what will make him happy in the future?

• A) very accurate most of the time
• B) moderately accurate most of the time
• C) not very accurate much of the time
• D) only accurate when the stakes are high

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Definitions:

Surplus Test

A financial measure used to determine if an entity has excess assets over liabilities, often in insurance contexts.

Net Asset Test

A financial metric used to evaluate a company's financial health by subtracting total liabilities from total assets.

Liability

The state of being responsible for something, especially in terms of legal or financial obligations.

Creditors

Individuals or institutions to whom money is owed.