Answer the Question on the Basis of the Following Table

question 119

Multiple Choice

Answer the question on the basis of the following table that illustrates the multiplier process. Refer to the given table.The change in income in round two will be:

• A) $4.
• B) $16.
• C) $20.
• D) $24.

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Definitions:

Accounts Payable

Liabilities to creditors for goods, supplies, or services purchased on credit but not yet paid.

Subsidiary Ledgers

Detailed ledgers that break down and provide supporting information for accounts listed in the general ledger.

Subsidiary Posting

A detailed entry process in accounting that involves recording transactions in subsidiary ledgers for a more comprehensive financial tracking.

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.