Which Statement Is Correct About Retirement Planning of Young Professionals

question 67

Multiple Choice

Which statement is correct about retirement planning of young professionals?

• A)They don't want to retire with plenty of money.
• B)They would rather save money now for retirement than spend it.
• C)They are not worried about having enough money to retire comfortably.
• D)Young people are in the best position to save.
• E)Saving money does not come naturally to many young people.

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Definitions:

Financing Activities

involve transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Direct Method

A cash flow statement preparation approach showing actual cash inflows and outflows from operating activities without adjustments for non-cash transactions.

Operating Activities

Activities that are directly related to the primary operations of the company, including cash inflows and outflows from selling products and services.

Indirect Method

A financial reporting approach to prepare the cash flow statement where non-cash activities are adjusted to the net income to calculate cash flow from operating activities.