Figure 2-2 -Refer to Figure 2-2.Boxes a and B of This Circular-Flow

question 143

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent

• A)firms and households.
• B)households and government.
• C)the markets for goods and services and the markets for financial assets.
• D)the markets for goods and the markets for services.

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Definitions:

Bill And Hold Sales

Transactions where revenue is recognized after billing the customer while the seller retains physical possession of the goods.

Shipments

The transportation of goods from one location to another.

Distributors

Entities involved in the process of making products available for consumption by distributing them from producers to end consumers.

Fair Value Option

An accounting approach allowing companies to report certain assets and liabilities at fair market values rather than historical costs.