Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram. 
Definitions:
Prepaid Insurance
An asset account that represents insurance payments made in advance for coverage that will be received in the future.
Office Supplies Account
An account used to track expenses related to materials and supplies used in an office environment.
Adjusting Entry
At the closure of an accounting period, entries are documented to attribute earnings and outlays to the span during which they genuinely happened.
Supplies Purchased
Represents the purchase of tangible goods or materials used in the production of goods or for the operation of the company.
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