Figure 2-1 -Refer to Figure 2-1.Which Arrow Represents the Flow of Spending

question 25

Multiple Choice

Figure 2-1
-Refer to Figure 2-1.Which arrow represents the flow of spending by households?

• A)A
• B)B
• C)C

---

Definitions:

Merchandise

Goods or products that are bought and sold by businesses.

Credit Sales

Sales made by a business where payment is delayed as per agreed-upon terms, typically recorded as accounts receivable.

Subsidiary Ledger

A detailed ledger that contains the granular transaction details supporting a summary account in the general ledger.

Sales Journal

A specialized journal used to record all sales of merchandise on credit, organizing transactions systematically for accounting purposes.