Which of the Following Would Be Included on a Personal

question 1

Multiple Choice

Which of the following would be included on a personal income statement?

• A) Your 401K balance
• B) Buying a flat-screen TV on credit
• C) Making a payment to your credit card company
• D) All of the above

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Definitions:

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and the bid-ask spread.

Total Costs

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Net Present Value

A method used in capital budgeting to evaluate and compare the profitability of investments, which calculates the difference between the present value of cash inflows and outflows.

Concentration Accounts

A single account used by companies to aggregate funds from different accounts, simplifying cash management.