Dan Missed Class the Day the Professor Covered the Circular

question 97

Multiple Choice

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

• A) requires a physical location for buyers and sellers to get together.
• B) is any arrangement that brings buyers and sellers together.
• C) must include a written contract between buyers and sellers.
• D) is only a place to purchase groceries.
• E) must have many buyers and only one seller, who is willing to sell to all the buyers.

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Definitions:

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.

Incurred Expenses

Costs that have been realized or consumed, typically through the operation of a business.