Which of the Following Statements Is False

question 203

Multiple Choice

Which of the following statements is false?

• A)Since 1955,Americans have been spending a larger percentage of their incomes on services.
• B)At the point when the C line crosses the 45-degree line,saving is equal to zero.
• C)Induced consumption is equal to autonomous consumption when disposable income is zero.
• D)According to the permanent income hypothesis,if a person received a windfall of $1 million he would spread his consumption of it over a period of years.

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Definitions:

Adjustment For Expired Insurance

An accounting entry made to reflect the decrease in value of an insurance policy over time, moving its cost from an asset to an expense.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual accounts receivable transactions and balances for customers.

Cash Receipts Journal

An accounting journal specifically used to record all receipts of cash, detailing the source of each receipt for a given period.

Record Payment

The process of documenting the payment of a bill or an obligation in the business’s financial records.