Use the Following to Answer Question(s): Income Distribution in the United

question 75

Multiple Choice

Use the following to answer question(s) : Income Distribution in the United States

-If you establish that a family is on the low end of the income scale and is thus considered poor, you have come up with a (n) :

• A) means-tested test.
• B) relative income test
• C) absolute income test
• D) nominal income test.

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Definitions:

Periodic Inventory

An inventory system in which the inventory count is conducted at specific periods, determining the cost of goods sold by beginning inventory plus purchases minus ending inventory.

Merchandise Inventory

Goods a company intends to sell to customers that are stored as inventory.

Purchases

Represents the total amount of goods bought by a business for resale or for use in production.

Rental Income

This is income received from renting out property or equipment. It is often considered passive income and must be reported for tax purposes.