The Marshalls Have Been Thinking About the Financial Principle ‑Pay

question 11

Multiple Choice

The Marshalls have been thinking about the financial principle ‑Pay Yourself First. Being very conservative, they might consider having their bank

• A) sell them a risky mutual fund.
• B) send them a monthly reminder to make a deposit in their savings.
• C) do a direct deposit of John's paycheck into their checking account.
• D) do a direct deposit of some of John's paycheck into a savings fund.
• E) both C and D above

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Definitions:

Earned

Earned refers to revenues or incomes that have been generated through business activities or provided services within a certain period.

Accumulated Depreciation

The total depreciation of an asset up until a single point in time, showing how much of its value has been used up.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial health.

Worksheet

A worksheet in accounting is a document used to compile information from ledger accounts for the purpose of preparing financial statements.