Which of the Following Is NOT Correct

question 89

Multiple Choice

Which of the following is NOT correct?

• A) Using credit can result in a greater chance of bankruptcy.
• B) Using credit can decrease the amount of money that will be available to spend in the future.
• C) Using credit offers convenience when shopping on the Internet.
• D) Using credit cards typically offer a "float" of up to 10 days.
• E) Using credit allows a consumer to shop without carrying a large amount of cash.

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Definitions:

Warranty Expenses

Costs that a company anticipates it will incur as a result of repairing or replacing products under warranty.

Income Statement

A financial report detailing a company's financial performance, including all income and expenses, ultimately showing the profit or loss over a defined time.

FICA Tax Rate

The percentage of an employee's gross earnings required by law to be withheld by the employer for Social Security and Medicare taxes in the United States.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.