In the Simple Circular Flow Diagram,the Flow of Money from the Markets

question 167

Multiple Choice

In the simple circular flow diagram,the flow of money from the markets for goods and services to the firms is called

• A)spending.
• B)revenue.
• C)income.
• D)wages,rent,and profit.

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Definitions:

Adjusting Entries

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all accounts in the general ledger with their balances before any adjustments are made for the end of the accounting period.

Drawing Account

A drawing account is used to track the money or goods withdrawn by the business owner for personal use from the business.

Net Loss

The amount by which total expenses exceed total revenues in a business, indicating a negative financial performance over a specific period.