Figure 24-1 -Refer to Figure 24-1.Ceteris Paribus,a Decrease in Households' Expectations of Households

question 206

Multiple Choice

Figure 24-1
-Refer to Figure 24-1.Ceteris paribus,a decrease in households' expectations of their future income would be represented by a movement from

• A)AD1 to AD2.
• B)AD2 to AD1.
• C)point A to point B.
• D)point B to point A.

---

Definitions:

Journal Entry

A record in the books of accounts that reflects the details of a financial transaction, including the accounts affected, date, and amounts.

Gross Accounts Receivable Approach

A method that estimates the total amount to be received from customers, without deducting expected bad debts.

Unadjusted Year End

The fiscal year-end date prior to any adjustments made for accounting purposes.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to ensure the accounting system's mathematical accuracy.