Match the Terms Below with the Correct Definitions

question 58

Multiple Choice

Match the terms below with the correct definitions.
-Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

• A)FOB destination
• B)Sales Returns and Allowances
• C)Controlling account
• D)Accounts receivable ledger
• E)Subsidiary ledger
• F)Purchases journal
• G)Sales invoice
• H)FOB shipping point
• I)General journal

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Definitions:

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.

Induced Consumption

Consumer spending that increases when income increases and decreases when income decreases.

Autonomous Consumption

Consumer spending that does not change in response to fluctuations in income, reflecting basic, non-discretionary expenditures.