Which One of the Following Statements Is True in the Four-Sector

question 13

Multiple Choice

Which one of the following statements is true in the four-sector circular model?

• A) Money flows from government to households for taxes.
• B) Money flows from foreign economies to households for exports.
• C) Money flows from government to firms for goods and services.
• D) Money flows from firms to foreign economies for exports.
• E) Money flows from households to foreign economies for resources.

---

Definitions:

Profit Margin

A financial metric used to evaluate a company's financial health by dividing net income by net sales, expressed as a percentage.

Direct Expenses

Expenses that can be directly attributed to a specific cost object, such as a product, department, or project.

Service Accounting System

An accounting system designed to deal with financial transactions and record-keeping in service-oriented businesses.

Departmental Accounting System

An accounting method used to separately track the performance and financial records of different departments within a company.