At Age 55,Maria Has Decided to Fulfill a Long-Time Dream

question 45

Multiple Choice

At age 55,Maria has decided to fulfill a long-time dream of becoming a lawyer and she is studying for the law school entrance exam (LSAT) .Her best friend Vivien,also age 55,has decided to sell her house and move into a retirement community,where she will spend her leisure time playing cards in the community club house.In terms of social age,Vivien would be considered _______________.

• A)older than Maria
• B)younger than Maria
• C)the same as Maria

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Definitions:

Allowance for Repairs

A reserve of funds set aside by a company to cover anticipated repair costs for its assets.

Deferred Credit

Liabilities or income that have been recognized but not yet earned, and therefore, postponed to a future accounting period.

Contra Account

An account that is used to reduce the value of a related account on a financial statement and presents the net balance of both accounts.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.