Which of the Following Is a Characteristic of the Life

question 16

Multiple Choice

Which of the following is a characteristic of the life cycle theory of savings?

• A)It assumes that utility cannot be measured in money terms.
• B)It says that our spending decisions are based on the amount of income we earn currently.
• C)Is says that before we establish our lifetime resources,we try to maintain a constant level of expenditures throughout our life cycle.
• D)All of the above.
• E)None of the above.

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Definitions:

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Internal Control

A process designed by an organization's management and personnel to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Reasonable Assurance

A concept in auditing that suggests although not absolute, there is a high level of confidence in the financial statements accuracy.

Control Activities

Procedures and policies that are implemented by an entity to ensure that its directives are carried out, including safeguarding assets and preventing and detecting errors and fraud.