Part of the Reason That People Confuse Money and Income

question 103

Multiple Choice

Part of the reason that people confuse money and income is because

• A)money is tangible, but income is intangible.
• B)money serves as the unit of account.
• C)money is abstract, but income is concrete.
• D)income is almost impossible to measure.

---

Definitions:

Working Capital

The contrast between a firm's current holdings and its due obligations, highlighting the accessible funds for running its business activities.

Straight-Line Depreciation

A tactic for parceling the cost of a tangible property throughout its lifespan in steady yearly payments.

Income Taxes

Taxes imposed by a government on the financial income generated by all entities within their jurisdiction.

Cash Flow

The inflow and outflow of cash representing the operating activities of an organization.