Which Is the Best Description of Discretionary Income

question 80

Multiple Choice

Which is the best description of discretionary income?

• A) money that the household saves for emergencies and does not spend
• B) the money available to a household after tax
• C) the total gross income the household has earned
• D) the money available to a household over and above that required for a comfortable standard of living

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Definitions:

Noncontrolling Interest

A minority stake in a company, held by investors or other companies that do not have control over business operations.

Valuation Basis

The method or approach used to determine the value of an asset or a company.

Investment Account

An account established to hold investments such as stocks, bonds, mutual funds, and other assets for long-term growth or income generation.

Adjusted Subsidiary Value

The valuation of a subsidiary company after making necessary adjustments to its assets and liabilities to reflect fair value or to eliminate intercompany transactions.