Emma Runs a Salon but Does Not Make Much Profit

question 29

Multiple Choice

Emma runs a salon but does not make much profit from her business. She likes to go on holidays frequently and spends most of her income on vacations. Emma knows that she needs to cut down on her expenses or it would be difficult to bear the daily expenses in the future. In the context of Emma's budget, her expenditures on vacations can be referred to as _____.

• A) obligatory payments
• B) statutory payments
• C) discretionary payments
• D) compulsory payments

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Definitions:

Approval

An official consent or agreement given usually after careful consideration.

Ethical Issues

Dilemmas or situations requiring a choice between actions that may be considered right or wrong based on moral principles.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards designed to improve the clarity, consistency, and comparability of financial reporting across industries.

Insider Trading

The illegal practice of trading a company's stock or other securities by individuals with access to non-public, material information about the company.