A Measure of Your Wealth Is

question 113

Multiple Choice

A measure of your wealth is

• A) the highest level of education you've attained.
• B) the amount of your annual income.
• C) the value of what you own minus the value of what you owe.
• D) your tax bracket.

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Definitions:

Direct Method

An allocation method that directly assigns service department costs to producing departments without any intermediate allocations.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are reported instead of adjusting net income for non-cash items.

Prepaid Expenses

Future expenses that have been paid in advance and are accounted for as assets on a balance sheet until they are incurred.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash is actually exchanged.