Which of the Following Is NOT Shown Explicitly in the Circular

question 52

Multiple Choice

Which of the following is NOT shown explicitly in the circular flow model?

• A) the governments' purchases in the goods market
• B) the taxes the governments collect from households
• C) the governments' interaction with firms
• D) the legal system
• E) the transfers the governments make to households

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Definitions:

Income Statement Debit

This is not a typical term in accounting as income statements are structured around revenues and expenses rather than debits and credits.

Credit Columns

The sections on the right side of accounting ledgers where credit transactions are recorded.

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and prepare financial statements.

Ledger

A comprehensive book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debit and credit entries in separate columns and a beginning and ending balance for each account.