Explain the Difference Between a Need and a Want

question 29

Essay

Explain the difference between a need and a want. Provide an example of each.

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Definitions:

Accounts Payable

Financial obligations that a company has to its vendors, recorded as liabilities on the company's balance sheet.

Accounts Receivable

Amounts receivable by a firm for goods or services rendered to customers, awaiting payment.

Fixed Asset Investment

The acquisition of long-term physical assets by a company to be used in its operations for generating income.

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to allocate the cost of an asset over its useful life.