When Planned Expenditure Is Drawn on a Graph as a Function

question 6

Multiple Choice

When planned expenditure is drawn on a graph as a function of income, the slope of the line is:

• A) zero.
• B) between zero and one.
• C) one.
• D) greater than one.

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Definitions:

Purchases Discounts

An allowance given by the seller to the buyer for early payment or for buying in large quantities.

Net Purchases

The total cost of goods bought for resale, after subtracting returns, allowances, and discounts.

Merchandise Inventory

Goods that a company holds for the purpose of selling to customers.

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.