In Input, or Factor, Markets

question 28

Multiple Choice

In input, or factor, markets

• A) consumers purchase products.
• B) firms supply goods.
• C) households supply resources.
• D) households demand goods.

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Definitions:

Contingent Liability

A potential obligation that may arise in the future, dependent on the occurrence of a specific event.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Expense Recognition Principle

An accounting standard that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Warranty Costs

Expenses incurred by a company to repair or replace products under warranty.