A Debit

question 107

Multiple Choice

A debit:

• A)Always increases an account.
• B)Is the right-hand side of a T-account.
• C)Always decreases an account.
• D)Is the left-hand side of a T-account.
• E)Is not needed to record a transaction.

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Definitions:

Consumption

The total value of goods and services consumed by households and businesses.

APC

Average Propensity to Consume, the fraction of total disposable income that households plan to spend on consumption as opposed to saving.

Income

The financial gain accrued by an individual or entity within a specified period, often through wages, salaries, or investments.

APC

Usually refers to Average Propensity to Consume, which is the fraction of income spent on consumption rather than saved.