Figure 2-2 -Refer to Figure 2-2.Boxes a and B of This Circular-Flow

question 143

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent

• A)firms and households.
• B)households and government.
• C)the markets for goods and services and the markets for financial assets.
• D)the markets for goods and the markets for services.

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Definitions:

Ending Inventory

At the close of an accounting period, the financial worth of products available for sale, computed by starting with the inventory at the beginning, adding in purchases, and deducting the cost of goods sold.

Inventory Costing

The methodology for assigning costs to inventory items, which may include approaches like FIFO, LIFO, or average cost methods.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated after considering the cost of goods sold.

Assets And Equity

Refers to the components of a company's balance sheet: assets represent what the company owns, and equity represents the owner's claims against those assets.