43 in a simple circular-flow diagram, total income and total expenditure are
These conditions are illustrated in Fig. 8.1. which is a circular flow diagram of income and output for a three-sector economy: The revenue of the business sector is used for paying rent, wages, interest and dividends to the household sector. A portion of income received by the household sector (10 is used In a simple circular-flow diagram, total income and total expenditure are A. never equal because total income always exceeds total expenditure. B. equal only when the government purchases no goods or services. C. always equal because every transaction has a buyer and a seller. In theory, cash flow isn't too complicated—it's a reflection of how money moves into and out of your business. Unfortunately, for small business owners, understanding and using cash flow formulas doesn't always come naturally. So much so that 60% of small business owners say they don't feel knowledgeable about accounting or finance.But by taking the time to read about these three key ....