The Other Revenues and Expenses Section of a Multistep Income

question 35

Multiple Choice

The other revenues and expenses section of a multistep income statement could include all the following except

• A)interest expense.
• B)interest income.
• C)dividend income.
• D)insurance expense.

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Definitions:

Consumption

The process of purchasing goods and services to fulfill the needs and wants of individuals.

Average Propensity

The ratio of total consumption to total income, indicating how much income is spent rather than saved.

Save

Setting aside money or other resources for future use or in case of emergencies.

Consume

The action of using up goods or services, thus leading to a reduction in available quantity.