Which of the Following Represents a Transfer Payment

question 124

Multiple Choice

Which of the following represents a transfer payment?

• A)You transfer $1000 from your bank account to a mutual fund.
• B)The bank transfers $10 quarterly interest to your savings account.
• C)The government sends your grandfather his pension cheque.
• D)Your employer automatically transfers $100 each month from your wages to a nontaxable medical spending account.

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used as an estimate of an asset's value if it were to be liquidated.

Accrued Property Taxes

Property taxes that have been incurred but not yet paid, typically recorded as a liability on the balance sheet.

Cost of Land

The purchase price and all associated costs, such as legal fees and surveying, of acquiring land for business use.

Asset's Cost

The total amount of money or the value exchanged to acquire, maintain, improve, or replace an asset.