ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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true
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false
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Either A or B
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None of the above
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Detailed explanation-1: -With every buying decision, there is a tradeoff and an opportunity cost. If you spend less money on an item than you planned to spend, this is an unfavorable variance in your budget analysis. Savings should be added to income when balancing the budget.
Detailed explanation-2: -Opportunity cost can best be defined as the. value of what must be given up in order to acquire an item. The term opportunity cost refers to the. value of what is forgone when a choice is made. You have just bought a used car, and drive away satisfied that you’ve made a good deal on the purchase.
Detailed explanation-3: -Net worth does not include the Allowance for Loan and Lease Losses account. This means that net worth only includes undivided earnings and appropriations of undivided earnings.