Which of the Following Statements Is TRUE If Your Money

question 384

Multiple Choice

Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?

• A) Your effective purchasing power falls.
• B) Your nominal income has been decreased.
• C) You will have to reduce the quantities you purchase of all goods.
• D) Your real income has increased.

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Definitions:

Sales Discount

A reduction given by a seller for prompt payment of a credit sale.

Cash Receipts Journal

A specialized accounting journal used to keep track of all cash inflows or receipts from various sources.

Entry

A record in an account that documents a financial transaction in bookkeeping.

Special Journals

Customized accounting journals used for recording specific types of transactions that occur frequently.