FIGURE 21-3 -Refer to Figure 21-3. the Simple Multiplier Could Be Measured

question 132

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3. The simple multiplier could be measured by the ratio

• A) Y1/0A.
• B) Y2/0B.
• C) Y1Y2/AB.
• D) BA/Y1.
• E) 1/Y2 - Y1).

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Definitions:

Accounting Records

Documentation and books that comprise a record of all financial transactions of a business, used for tracking its income, expenses, assets, and liabilities.

Cash Disbursements

Outflows of cash for expenses, payments to creditors, or investments, usually tracked in a cash disbursements journal in accounting.

Payments

Payments refer to the transfer of money from one party to another, often as compensation for goods or services.

Petty Cash Fund

A small amount of cash kept on hand within a business for minor and immediate expenses.