Refer to the Consumption Schedule Above

question 81

Multiple Choice

Refer to the consumption schedule above. At income level 3, the amount of saving is represented by the line segment:

• A) FG
• B) FH
• C) FD
• D) GH

---

Definitions:

Sales Returns and Allowances

Concessions made to customers for returned merchandise or unsatisfactory goods, reducing sales revenue.

Office Supplies

Items used in offices for daily operations and tasks, including stationery, pens, paper, and other small equipment, often classified as current assets in accounting.

Net Sales

The total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and any discounts given.

Gross Sales

Gross Sales are the total sales income of a business before any deductions are made for returns, allowances, or discounts.