Which of the Following Is NOT Correct

question 168

Multiple Choice

Which of the following is NOT correct?

• A) Using credit is appropriate to pay for medical emergencies.
• B) Using credit can increase the amount of money that will be available to spend in the future.
• C) Using credit sometimes occurs automatically, such as for water or electricity usage.
• D) Using credit cards usually makes returning merchandise without a receipt easier.
• E) Using credit allows consumers to enjoy goods and services now and pay later.

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Definitions:

Operating Activities

Day-to-day business functions and transactions related to a company's core business operations, such as sales and purchasing.

Net Income

The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, as a distribution of the company’s earnings.

Direct Method

A technique used in accounting to prepare the cash flow statement, where actual cash flows from operating activities are reported instead of adjustments to net income.