The Cash Remaining After the Firm Has Met Its Operating

question 74

Multiple Choice

The cash remaining after the firm has met its operating expenses, payments to creditors, and taxes is called

• A) earnings per share.
• B) capital contributed in excess of par.
• C) residual cash.
• D) assets.

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Definitions:

APC

In economics, stands for Average Propensity to Consume, which is the ratio of total consumption to total disposable income.

APC

Average Propensity to Consume, which is the fraction of income that households spend on consumption as opposed to saving.

APS

Stands for Average Propensity to Save, which measures the proportion of income that households save rather than spend on goods and services.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.