All of the Following Budgets Are Prepared by Service Companies

question 108

Multiple Choice

All of the following budgets are prepared by service companies except

• A)cost of goods sold, inventory and purchases.
• B)cash.
• C)operating expense.
• D)sales.

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Definitions:

Multiplier Effect

The proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Fiscal Policy

The manipulation of economic activity through fiscal policies involving spending and taxation by a government.

Aggregate Demand

The cumulative demand for every service and product in an economic system, measured at an overall given price level for a specific time frame.

Marginal Propensity to Consume

The proportion of an increase in income that an individual or population spends on goods and services as opposed to saving.