Which of the Following Is an Example of Opportunity Cost

question 42

Multiple Choice

Which of the following is an example of opportunity cost?

• A)Renting an apartment near school
• B)Saving money instead of taking a vacation
• C)Setting aside money for paying income tax
• D)Purchasing automobile insurance
• E)Using a personal computer for financial planning

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Definitions:

Installment

A method of paying for goods or services or repaying a loan through regular, scheduled payments.

Accounting Equation

The basic formula of double-entry accounting: Assets equal Liabilities plus Equity.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the financial position of a business.

Liabilities

Financial obligations or debts owed by a business to another entity, payable in the future.