Which of the Following Is FALSE About Saving

question 16

Multiple Choice

Which of the following is FALSE about saving?

• A)Saving adds to wealth.
• B)Income left after paying taxes can either be consumed or saved.
• C)Saving equals wealth minus consumption expenditure.
• D)Saving is the source of funds used to finance investment.
• E)Saving supplies funds in loan markets, bond markets, and stock markets.

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Definitions:

Direct Materials

The raw materials that can be directly attributed to the production of a product.

Manufacturing Overhead

All production costs other than direct materials and direct labor, including expenses such as maintenance, utilities, and depreciation on manufacturing facilities.

Capital Expenditure Budget

A budget for planning and controlling spending on long-term assets, including buildings, equipment, and technology, intended for future operations.

Long-Term Assets

Assets that are expected to provide economic benefits over a period longer than one year, such as buildings and equipment.