Two-Dimensional Graphs Have a Horizontal and a Vertical Axis and Are

question 172

Multiple Choice

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

• A)relationships between two economic variables.
• B)one variable.
• C)a flow chart.
• D)a pie chart.

---

Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.

Owner's Capital

The amount of equity a business owner has invested in their firm or the net assets belonging to the owner.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specified accounting period, facilitating the transfer of the net income or loss to owner's equity.