The Residual Interest in the Resources of an Entity That

question 46

Multiple Choice

The residual interest in the resources of an entity that remains after deducting its debts to third parties defines

• A)assets.
• B)liabilities.
• C)equity.
• D)retained earnings.

---

Definitions:

Taxes

Compulsory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Disposable Income

Money left after taxes and social security contributions have been subtracted, which can be either spent or saved according to personal preference.

Aggregate Spending

The total spending in an economy, including consumption, investment, government expenditures, and net exports.

Discretionary Fiscal Policy

The deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals, such as full employment, price stability, and economic growth