Purchases of Inventories by

question 49

Multiple Choice

Purchases of inventories by

• A) firms are not counted in investment spending.
• B) firms are also counted in investment spending.
• C) households are also counted in investment spending.
• D) households and Firms are also counted in investment spending.
• E) foreign consumers are counter in investment spending.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being summarized in the ledger.

Ledger

A ledger is a comprehensive collection of accounts used in accounting to record and summarize all financial transactions.

Capital Account

An account used for a proprietorship that represents the owner’s equity.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.