If an Increase in Income Results in an Increase in the Demand

question 130

Multiple Choice

If an increase in income results in an increase in the demand for Honda Civics,then Honda Civics are considered

• A) normal goods.
• B) inferior goods.
• C) substitute goods.
• D) complementary goods.

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Definitions:

Dividends Account

An account that records the dividends declared by a corporation to be distributed to its shareholders.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenues.

Closing Entries

These are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts, hence preparing the books for the next period.

Revenue Accounts

Accounts used to record the income generated from the sale of goods or services in the normal course of business.