If the Demand of a Good Is Inversely Related to Income

question 76

Multiple Choice

If the demand of a good is inversely related to income, it must be

• A) a bad good.
• B) an inferior good.
• C) a normal good.
• D) an everyday product.

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Definitions:

Depreciation

The systematic allocation of the diminution in the value of a tangible asset over its useful life.

General Journal

A comprehensive record of all financial transactions of a company, used to make entries not suited for specific ledgers.

Posting

In accounting, posting refers to the process of transferring entries from the journal into their respective accounts in the ledger, for the purpose of organizing and summarizing financial information.

Journal

A detailed record where all financial transactions of a business are initially recorded before transfer to accounts in the general ledger.