The Asset That Results from the Payment of Expenses in Advance

question 43

Multiple Choice

The asset that results from the payment of expenses in advance is:

• A)Accounts receivable
• B)Short term investments
• C)Inventory
• D)Prepaids

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Definitions:

Consumer Surplus

The variance between what consumers are ready and capable of paying for a product or service versus what they actually end up paying.

Airlines

Entities that deliver passenger and freight transportation via air.

Short Run

A period in which at least one factor of production is fixed and cannot be changed, influencing production and cost.

Long Run

A time period in economics sufficient for all markets to adjust, including those for labor and capital, with all factors of production and costs variable.