Which of the Following Is an Implication of the Retirement

question 54

Multiple Choice

Which of the following is an implication of the retirement of baby boomers?

• A) The current workforce will adequately compensate the manpower shortage left behind by baby boomers.
• B) The baby boomers' knowledge and expertise will be transferred to the current workforce because it is formalized.
• C) Baby boomers will live longer, resulting in higher health-care costs for the current workforce.
• D) Baby boomers will survive in sufficient comfort owing to the abundant savings they collected over decades.
• E) The current workforce will pay less toward the Social Security needs than those of the baby boomer generation.

---

Definitions:

Extraordinary Item

An unusual and infrequent gain or loss that is reported separately in a company's financial statements to give a clearer picture of its regular income.

Operating Assets

Assets that are used by a business in its daily or regular operations to generate revenue, including cash, inventory, and property, plant, and equipment.

Nonmonetary Asset

Assets that are not convertible directly into a fixed amount of money and do not have a stated monetary value, such as property, equipment, and intellectual property.

Fair Value

The projected cost at which an asset or liability could be swapped between consenting, informed entities in a transaction without any special ties.