Your Net Worth Can Change Even If Your Net Cash

question 111

True/False

Your net worth can change even if your net cash flows are zero.

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Definitions:

Payroll Deductions

Monies withheld from an employee’s paycheck by the employer for taxes, insurance premiums, retirement fund contributions, and other purposes.

Weekly Payroll

The total amount of money a company pays to its employees on a weekly basis.

Warranty Period

The length of time during which a manufacturer promises to repair or replace defective products at no charge to the customer.

Estimated Warranty Expense

Estimated Warranty Expense is an anticipated cost a company expects to incur related to its product warranties, predicting repairs or replacements it will provide for products sold within a given period.