To Determine How Much You Would Need to Save Each

question 65

Multiple Choice

To determine how much you would need to save each year to reach a specific goal, you would use

• A) present value of $1.
• B) future value of $1.
• C) present value of an annuity.
• D) future value of an annuity.

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Definitions:

Income Statement

A document detailing a firm's income and outgoings during a certain time, ending in either a profit or a deficit.

Net Income

The total profit of a company after subtracting all costs, expenses, and taxes from the total revenue.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a company's financial performance was negative.

Owner Withdrawal

The process by which an owner takes funds or assets out of the business for personal use, often referred to as "draws."