Disposable Income Equals Aggregate Income

question 10

Multiple Choice

Disposable income equals aggregate income

• A)minus net taxes.
• B)plus saving minus net taxes.
• C)plus net taxes.
• D)minus saving.
• E)minus saving and minus net taxes.

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Definitions:

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay at a later date.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable which may not be collected due to customer defaults.

Bad Debt Expense

The cost recognized by a company because of the expectation that certain accounts receivable will not be collected.

Cost of Sales

refers to the direct costs attributable to the production of the goods sold in a company.