Madison Comes from a Poor, Working-Class Family

question 14

Multiple Choice

Madison comes from a poor, working-class family. However, she worked hard, got good grades, and landed a great job. She is now considered middle class. Which of the following terms best characterizes the type of stratification system that Madison experienced?

• A) open
• B) mixed
• C) closed
• D) neutral

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Definitions:

Net Purchases

Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.

Operating Expenses

Expenses incurred during the normal functioning of a business, excluding the cost of goods sold; these can include salaries, rent, utilities, and marketing expenses.

Closing Entries

journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next period.