Use the Following to Answer Question(s): Income Distribution

question 9

Multiple Choice

Use the following to answer question(s) : Income Distribution

-(Exhibit: Income Distribution) Curve B:

• A) is called a Lorenz curve.
• B) shows that the lowest 20% of the families gets 60% of the income.
• C) shows that 60 percent of the families get 40 percent of the income.
• D) shows an equal distribution of income.

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Definitions:

LIFO

Last In, First Out (LIFO) is an inventory valuation method that assumes the most recently produced or acquired items are the first to be sold, affecting the cost of goods sold and inventory valuation.

Straight-Line Method

A method of calculating depreciation by distributing the cost evenly across an asset's useful life.

Expense Recognition

The principle that expenses are recognized when they contribute to the generation of revenue, not necessarily when the cash is paid.