Which of the Following Would Be Considered a Personal Consumption

question 97

Multiple Choice

Which of the following would be considered a personal consumption expenditure?

• A) A household's purchase of new lawn mower.
• B) A firm's purchase of a computers for its statisticians.
• C) A household's purchase of an old home.
• D) The government's purchase of a new computer.

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Definitions:

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.

Liabilities

are legal financial debts or obligations that arise during the course of business operations.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders or partners.