Refer to the Information Provided in Table 36

question 43

Multiple Choice

Refer to the information provided in Table 36.3 below to answer the question(s) that follow.
Table 36.3
The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y
-Refer to Table 36.3. The error for point D is equal to

• A) -2.
• B) -1.
• C) +1.
• D) +2.

---

Definitions:

Direct Method

In financial accounting, refers to a way of allocating service department costs directly to producing departments without intermediate allocations.

Cash Basis

A bookkeeping practice in which income and outgoings are documented at the point of actual transaction, instead of when they are accrued.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not related to the entity's primary business operations.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity, typically reported in the cash flow statement.