An "Average" Older Household Spends More Money on

question 6

Multiple Choice

An "average" older household spends more money on

• A) Clothing than on housing.
• B) Contributions than on medical care.
• C) Entertainment than on transportation.
• D) Housing than on contributions, entertainment, and clothing combined.
• E) Personal insurance than on food.

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Definitions:

Straight-Line Depreciation

A plan for breaking down the expense of a real asset across its viable life in steady annual segments.

Salvage Value

The anticipated earnings from an asset's sale following the cessation of its useful life.

Net Cash Flow

The variance between the cash entering and leaving a business over a given timeframe.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, simplifying accounting computations.