Examples of Precommitments to Deal with People's Time Inconsistency Problems

question 280

Multiple Choice

Examples of precommitments to deal with people's time inconsistency problems include the following, except

• A)automatic payroll deductions.
• B)debit card accounts.
• C)early withdrawal penalties.
• D)salary smoothing.

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Definitions:

Current Rate Method

An accounting technique used to convert all foreign currency items into the reporting currency at the current exchange rate.

Translated

In financial contexts, refers to the process of converting the financial statements of a foreign entity into the reporting currency of the parent company.

Temporal Method

An accounting technique for converting the financial statements of a subsidiary in a foreign currency into the parent company's reporting currency.

Retained Earnings

Profits that a company retains at the end of a fiscal period, which are not distributed to shareholders as dividends but are reinvested in the business.