The Components of National Income for an Economy Are Represented

question 179

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { National income } & \$ 1,000 \\\hline \text { Retained earnings not paid as dividends } & 50 \\\hline \text { Transfer payments } & 40 \\\hline \text { Interest on government bonds } & 20 \\\hline \text { Personal taxes } & 30 \\\hline\end{array}$$ The components of national income for an economy are represented in Table 19-27 above.All values are in billions of dollars.
-Refer to Table 19-27.What is the level of personal income for this economy?

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Definitions:

Recording Process

The systematic method of documenting business transactions in the accounting records in a chronological order.

Journal

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

Ledger

A comprehensive collection of all the accounts of a business, where transactions are recorded in a structured and detailed manner.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, usually resulting in a net profit or loss.