A Major Activity in the Planning Component of Financial Planning

question 58

Multiple Choice

A major activity in the planning component of financial planning is:

• A) selecting insurance coverage.
• B) evaluating investment alternatives.
• C) gaining occupational training and experience.
• D) allocating current resources for spending.
• E) establishing a line of credit.

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Definitions:

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Merchandising Company

A company that purchases goods ready for sale and sells them to customers, typically involved in retail or wholesale trade.

Service Company

A business that provides intangible products or services to consumers, rather than physical goods.

FOB Destination

A shipping term where the seller is responsible for the transportation costs and risks until the goods reach the buyer's specified location.