In the Markets for Goods and Services in the Circular

question 69

Short Answer

In the markets for goods and services in the circular flow diagram, households act as

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized into operating expenses or non-operating expenses.

Writing Off

The process of recognizing that an asset has lost value or a debt is uncollectible and reflecting this in the accounting records.

Bad Debt

Money owed to a company that is unlikely to be paid by the debtor, often leading to a financial loss for the company.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.