A Transfer Payment Is a Sum of Money

question 145

Multiple Choice

A transfer payment is a sum of money

• A)spent by government for new goods and services.
• B)shifted between members of a household.
• C)given by government without a good or service in exchange.
• D)moved between companies for goods and services.
• E)required to pay taxes.

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Definitions:

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.

Accrued Asset

An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.

Accrued Expense

Expenses that have been incurred but not yet paid, recognized in the period they occur rather than when payment is made.