Determine Whether the Spending Pattern Described Is At, Above, or Below

question 34

Multiple Choice

Determine whether the spending pattern described is at, above, or below the national average. Assume that any salariesor wages are after tax.
-A single 31-year old man with a monthly salary of $3100 spends $560 on food.

• A)below average
• B)at average
• C)above average

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Definitions:

Cash Short

A situation where the actual cash on hand is less than the expected amount, often due to errors or theft.

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profitability over a specific period.

Petty Cash Receipts

Petty cash receipts are documents that record the disbursements made from a petty cash fund for small, incidental expenses.

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold, affecting the costs reported in the financial statements.