Saving to Meet Long-Term Objectives-Such as Retirement, College Attendance, or to Purchase

question 57

Multiple Choice

Saving to meet long-term objectives-such as retirement, college attendance, or to purchase a home,-is called ________ saving.

• A)public
• B)bequest
• C)precautionary
• D)life-cycle

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Definitions:

Long-Term Debt

Financial obligations of a business or individual that are due more than one year in the future.

Equipment Trade

The act of exchanging equipment between parties, usually without the exchange of money.

Direct Approach

A communication strategy that involves conveying a message in a straightforward and clear manner, without circumvention.

Indirect Approach

A methodology used in financial reporting, specifically in the cash flow statement, where net income is adjusted for changes in balance sheet accounts to reflect the cash transactions.