Which One of the Following Is Not a Danger Signal

question 52

Multiple Choice

Which one of the following is not a danger signal of potential debt problems?

• A)paying the minimum balance due each month
• B)receiving notice of prompt payment from creditors
• C)using savings to pay for major purchases
• D)repaying loans faster than required
• E)depending on overtime and moonlighting to meet expenses

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Definitions:

Combined Reporting

A method used in corporate taxation that combines the tax reports of related companies into one comprehensive report.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring debts, and entering into contracts.

Bond Investment Transactions

A financial activity involving the buying or selling of bonds, which are debt securities issued by entities to raise funds.

Accrued Interest

The interest that has been incurred but not yet paid at the end of a period on loans or bonds.