Saving in Our Simple Model

question 99

Multiple Choice

Saving in our simple model

• A)varies inversely with income
• B)is determined primarily by the interest rate
• C)is positive when a person spends less than her income
• D)can never be negative because it is a stock
• E)can never be negative because it is a flow

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Definitions:

Fees Earned

Income earned from providing services, recorded as revenue in the income statement.

Correcting Entry

An entry made in accounting records to correct a previous error or adjust for discrepancies.

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in the form of debits and credits.

Debits

Accounting entries that increase assets or expenses and decrease liabilities, equity, or revenue, recorded on the left side of accounting ledgers.