If You Hold Money in Anticipation of Household Emergency Expense

question 228

Multiple Choice

If you hold money in anticipation of household emergency expense, this represents the::

• A) speculative demand for holding money.
• B) transactions demand for holding money.
• C) opportunity cost motive for holding money.
• D) precautionary demand for holding money.
• E) regressive cost of holding money.

Learn the criteria for reportability of operating segments under the revenue, profit or loss, and asset tests.

Understand how inventory and long-term contract losses are treated in interim financial reports.

Grasp the requirements for disclosing earnings per share and other key financial items in interim reports.

Become familiar with the disclosure requirements under International Financial Reporting Standards (IFRS) for interim reporting.

---

Definitions:

Return on Equity

Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Financial Statements

Documents that summarize a company's financial performance and position, including detailed reports on assets, liabilities, income, and cash flows, essential for assessing fiscal health.

Stock Market

A public marketplace for buying, selling, and trading stocks, where the prices of these stocks are determined by supply and demand.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; calculated as sales divided by average assets.