FIGURE 14-7 -Refer to Figure 14-7.On the Lorenz Curve Shown in the in the Diagram

question 76

Multiple Choice

FIGURE 14-7
-Refer to Figure 14-7.On the Lorenz curve shown in the diagram,

• A)the poorest 20% of families earn almost 90% of total income.
• B)perfect equality of income distribution occurs.
• C)the richest 20% of families earn over 60% of total income.
• D)the functional distribution of income is shown.
• E)the richest 20% of families earn almost 40% of total income.

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Definitions:

Electronic Funds Transfers

The electronic transfer of money between accounts by consumer electronic systems rather than the exchange of cash, checks, or other paper documents.

Internal Control Of Cash

Procedures and measures implemented by a business to monitor, manage, and protect its cash transactions and holdings.

Voucher System

A control mechanism in accounting to approve and document all disbursements of cash for business transactions.

Cash Payments

Transactions involving the outflow of cash to settle debts, purchase goods, or cover expenses.