A Decrease in Wealth ________ Consumption Expenditure and ________

question 137

Multiple Choice

A decrease in wealth ________ consumption expenditure and ________.

• A)decreases;results in a movement downward along the consumption function
• B)increases;shifts the consumption function downward
• C)decreases;shifts the consumption function upward
• D)decreases;shifts the consumption function downward
• E)increases;shifts the consumption function upward

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Definitions:

Retained Earnings

The portion of net income that is held by a company and not distributed to shareholders as dividends, used for investment or debt repayment.

Revenues

The complete earnings derived from transactions involving goods or services that are fundamental to an organization's core functions.

Expenses

Outflows or the using up of assets or incurrence of liabilities from a company's activities intended to generate revenue.

End-Of-Period Spreadsheet

A tool used in accounting to gather all account balances at the end of an accounting period to prepare financial statements.