Why Do People Overspend on Funerals

question 61

Multiple Choice

Why do people overspend on funerals?

• A)People want to be sure they themselves will receive a lavish funeral.
• B)The bereaved are in an especially vulnerable emotional state.
• C)In order to avoid paying inheritance taxes.
• D)The complexities of governmental regulations related to burying the dead are poorly understood.

---

Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Other Comprehensive Income

A component of shareholders' equity that includes income and expenses not recognized in net income, such as unrealized gains and losses on investments.

Unrealized Gains

Increases in the value of an asset that have not been sold, hence not yet converting the gain into cash.

Available-For-Sale Securities

Financial assets that are purchased with the intention of selling before their maturity date, not held for long-term investment.