Only Four Categories of Spending Account for Almost 90% of All

question 31

True/False

Only four categories of spending account for almost 90% of all consumer spending.

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Definitions:

Accrual

The accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Expense

An expense represents a cost incurred by a business or individual in the process of generating revenue.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.

Equipment

Tangible property owned by a business that is used in its operations to generate income, having a useful life beyond one year.