Cash Disbursements May Include All of the Following EXCEPT

question 40

Multiple Choice

Cash disbursements may include all of the following EXCEPT

• A)savings deposits
• B)depreciation expense
• C)amortization
• D)accrued wages
• E)none of the above

Understand the impact of tax policies on investment returns.

Recognize the investment horizon preferences of various financial institutions.

Identify the typical asset allocation of general pension funds.

Understand the financial benefits of home ownership.

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Definitions:

Book Value

The worth of an asset as reported in the balance sheet, determined by subtracting any depreciation from the asset's initial cost.

Depreciable Cost

The total amount that an asset’s value can be depreciated over its useful life, excluding salvage value.

Salvage Value

The conjectured remain value of an asset at the end of its productive life.

Straight-Line Method

A technique for determining depreciation or amortization by equally distributing an asset's cost throughout its lifespan.