One Aspect of Financial Planning Is to Use Credit Appropriately/wisely

question 3

Multiple Choice

One aspect of financial planning is to use credit appropriately/wisely.Which component of financial planning does this deal with?

• A)Borrowing
• B)Spending
• C)Managing risk
• D)Investing
• E)Retirement and estate planning

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Definitions:

Journal Entries

The record of financial transactions in the books of accounts in chronological order, showing the accounts and amounts debited and credited.

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without controlling it.

Common Shares

Equity investments that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Equity Method

An accounting method used to assess the profits earned through the investment in another company by updating the investment's value based on the investee's net income or loss.