Which of the Following Would Be Classified as a Short-Term

question 44

Multiple Choice

Which of the following would be classified as a short-term goal?

• A) Purchasing a house in three years
• B) Buying new clothes this month
• C) Retiring in ten years
• D) Paying for your two-year-old child's college education

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Definitions:

Cash Basis

An accounting method that recognizes revenues and expenses only when money is actually received or paid out.

Sales Adjusted

The revision of sales figures to reflect returns, allowances for damaged goods, or changes due to promotional strategies, providing an accurate net sales number.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively, not when the transactions occur.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold in a company.