-The Above Table Has Data from the Nation of Media

question 253

Multiple Choice

$$\begin{array} { c c } \begin{array} { c } \text { Disposable income } \\\text { (trillions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Consumption expenditure } \\\text { (trillions of 2005 dollars) }\end{array} \\\hline 0.0 & 1.5 \\2.0 & 3.0 \\4.0 & 4.5 \\6.0 & 6.0 \\8.0 & 7.5 \\\hline\end{array}$$
-The above table has data from the nation of Media.Based on these data, when disposable income is $8.0 trillion, saving is

• A) -$0.5 trillion.
• B) -$1.5 trillion.
• C) $0.5 trillion.
• D) $1.5 trillion.
• E) $7.5 trillion.

---

Definitions:

Adjusting Entry

An accounting record made to update the balances of accounts at the end of an accounting period before the preparation of financial statements.

Sales

Transactions involving the transfer of goods or services from a seller to a buyer in exchange for money or other considerations.

Days' Sales in Receivable

A financial metric that calculates the average number of days it takes for a company to collect payments after a sale has been made.

Financial Records

Documents that capture all financial transactions of a business or individual, including income, expenses, assets, and liabilities.