Which of the Following Would Increase the Amount That a Person

question 42

Multiple Choice

Which of the following would increase the amount that a person could afford to spend on a home?

• A)increase in family income
• B)increase in interest rates
• C)decrease in down payment
• D)increase in other financial obligations
• E)increase in monthly living expenses

---

Definitions:

Average Sale Period

The average time it takes for a company to convert its inventory into sales, often used in analyzing a company's efficiency.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including the cost of the materials and labor directly used to create the good.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Inventory Turnover

A ratio indicating how many times a company has sold and replaced inventory during a certain period of time.