Disposable Personal Income Is Calculated as Personal Income

question 3

Multiple Choice

Disposable personal income is calculated as personal income:

• A) adjusted for inflation.
• B) minus depreciation.
• C) minus taxes.
• D) plus transfer payments.

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Definitions:

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.

Fair Value

The estimated price at which an asset or liability could be sold or settled in a current transaction between willing parties.