In the Circular Flow Model

question 132

Multiple Choice

In the circular flow model,

• A) money flows from the firms to the households through the product market.
• B) money flows from the households to the firms through the product market.
• C) money flows from the households to the firms through the resource market.
• D) money flows from the households to the firms through both the product market and the resource market.
• E) resources flow to the households from the firms through the product market.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.

Supplies Expense

Costs incurred for supplies used in the operations of a business.

Adjustment Data

Information used to make changes to accounts for the purposes of accurate financial reporting, such as accruals or deferrals.

Unbilled Consulting Revenue

Revenue earned from consulting services that have been delivered but not yet invoiced to the client.