What Are the Four Sectors in a More Complex Circular-Flow

question 123

Multiple Choice

What are the four sectors in a more complex circular-flow diagram?

• A) households, government, financial markets, and international trade
• B) households, firms, government, and financial markets
• C) households, firms, financial markets, and international trade
• D) households, firms, government, and international trade

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Definitions:

Journalize Entry

The act of recording a transaction in the accounting journal as part of the bookkeeping process.

Accounts Receivable Turnover

A financial metric indicating how often a company collects its average accounts receivable within a period, showing its efficiency in credit and collections.

Days' Sales in Receivables

A financial ratio that measures how well a company is managing its accounts receivable by calculating the average number of days it takes to collect payments from customers.

Fiscal Year

A one-year period used for financial reporting and budgeting by businesses and governments, which may not align with the calendar year.