A Transfer Payment Is

question 7

Multiple Choice

A transfer payment is

• A)a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.
• B)a payment that is automatically transferred from your bank account to pay a bill or some other obligation.
• C)a form of government spending that is not made in exchange for a currently produced good or service.
• D)the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.

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Definitions:

Investor Ownership

A form of equity representing an individual's or entity's ownership stake in a company, as evidenced by stock or similar securities.

Accounting Guidelines

Established principles and standards that govern financial reporting and bookkeeping practices.

Cost Method

A method of accounting where the investment is recorded at its acquisition cost, without subsequent change to market value.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.