During 2016, Victorʹs Consumption Equals $30,000 and the Change in His

question 151

Multiple Choice

During 2016, Victorʹs consumption equals $30,000 and the change in his net worth is -$5,000. Victorʹs economic income for 2013 is

• A) $5,000.
• B) $25,000.
• C) $30,000.
• D) $35,000.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing company's books but not yet cashed by the recipient.

NSF Checks

Non-Sufficient Funds (NSF) checks are checks that cannot be processed due to insufficient funds in the account on which they are drawn.

Bank Service Charge

Fees charged by banks for various services provided to customers, such as account maintenance or transaction processing.

Petty Cash Custodian

An individual responsible for managing a petty cash fund, disbursing small amounts of cash for minor expenses, and maintaining records of these transactions.