The Largest Component of Aggregate Income Is

question 96

Multiple Choice

The largest component of aggregate income is:

• A)interest.
• B)rents.
• C)employee compensation.
• D)profits.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset evenly across its useful life, where the same amount is expensed each year.

Accumulated Depreciation

The cumulative total of depreciation charges applied to a fixed asset from the time of its acquisition.

Machinery

Machines or automated systems used in the manufacturing process or to carry out various tasks. Machinery is considered a long-term, fixed asset in accounting.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.