Based on the Life Cycle of Financial Planning, When Would

question 24

Multiple Choice

Based on the Life Cycle of Financial Planning, when would be a good time to review and possibly adjust an effective financial plan?

• A) a really effective financial plan doesn't need to be adjusted.
• B) when you get married
• C) when you have children
• D) when the stock market goes up
• E) both B and C are correct answers

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes in the future due to differences between accounting practices and tax regulations.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence, which can be depreciated over its useful life.

Realisation of Profit

The process by which a profit is recognized on the books once a transaction is completed and the revenue can be reliably measured.

External Party

An individual, group, or organization outside of a company that can affect or be affected by the business's activities.