A(n)_____ Is a Document That Itemizes Expected Sources of Income

question 126

Multiple Choice

A(n) _____ is a document that itemizes expected sources of income and expenditures for the coming year,along with the relevant money amounts for each.

• A)income statement
• B)statement of net-worth
• C)budget
• D)cash-flow statement

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Definitions:

Savings

The portion of income not spent on current expenditures or taxes, which is set aside for future use or investment.

Autonomous Consumption

Spending that does not depend on current income levels, such as basic necessities, implying that this consumption occurs even in the absence of income.

Disposable Income

represents the amount of money that households have available for spending and saving after income taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but rather set aside for future use or emergencies, contributing to personal and national wealth.