Personal Income Is

question 399

Multiple Choice

Personal income is

• A) the sum of all incomes received by households on welfare.
• B) the income households have after paying federal taxes.
• C) the sum of all incomes received by households.
• D) the sum of all incomes earned by sole proprietorships and partnerships.

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Definitions:

Managerial Accounting

A type of accounting that focuses on providing information to internal managers for decision-making, planning, and controlling purposes.

External Users

Individuals or entities outside a company who use its financial information, such as investors, creditors, analysts, and regulatory agencies, for decision-making purposes.

Ending Finished Goods Inventory

The value of all the finished goods held by a company at the end of an accounting period, ready for sale.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.