All of the Following Are Examples of the "Income Objective

question 19

Multiple Choice

All of the following are examples of the "income objective" of investment except:

• A) A 65-year-old planning how to use his wealth to support himself now that he is retired.
• B) A pension fund trying to match revenues to its current pension payout needs.
• C) A university endowment fund wanting to use gift assets to fund an annual scholarship program.
• D) A 25-year-old planning to be able to buy a house in 5 years.
• E) A bank investing assets so as to be able to pay interest on current savings deposits.

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Definitions:

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Finished goods held for sale by a company in the ordinary course of business; also known as stock-in-trade.

Bank Credit Card Sales

Transactions in which the purchase is made using a bank-issued credit card, processed through the banking network.

Credit Card Expense

Charges and fees incurred from the use of a credit card, including purchases, cash advances, and interest charges.