-Refer to the Above Figure

question 418

Multiple Choice

-Refer to the above figure. Line ACE is called

• A) the saving function.
• B) the savings function.
• C) the 45-degree line.
• D) the consumption function.

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Definitions:

Net Income

The net income of a business, which is obtained by deducting all costs and taxes from its total revenue.

Physical Count

The actual tallying of inventory goods a company has on hand to verify stock levels and assess the need for adjustment in accounting records.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Cost Of Goods Sold

Expenses directly tied to the production process of goods a company markets.