Use the Following to Answer Questions

question 135

Multiple Choice

Use the following to answer questions:
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model. What is the value of disposable income?

• A) $1,020
• B) $1,000
• C) $870
• D) $850

---

Definitions:

Inventory Sold

Inventory sold refers to the goods or merchandise a company sells to its customers during a specific period, which were previously part of the company's inventory.

Perpetual Inventory System

A method of accounting for inventory that updates the inventory levels continuously after each purchase, sale, or return.

Income Statement

An income statement is a financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Perpetual Inventory System

An inventory transaction recording method that utilizes computerized point-of-sale systems and enterprise asset management software to instantly register the sale or acquisition of goods.