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:

Salary Expense

The cost incurred by an employer for the payment of salaries to employees, considered an operating expense.

Salaries Payable

Liabilities representing the amounts owed to employees for work performed and not yet paid.

Salaries Accrued

This denotes the salaries that employees have accrued but the company has not yet disbursed.

Salaries Payable

An account representing the amounts owed to employees for work performed but not yet paid.