Which of the Following Is the Best Definition of Sustainable

question 25

Multiple Choice

Which of the following is the best definition of sustainable income?

• A) Sustainable income is a measure of solvency that does not include capital expenditure.
• B) Sustainable income is the same as net income.
• C) Sustainable income is income that is unusual in nature and infrequent in occurrence.
• D) Sustainable income is the most likely level of income to be obtained in the future.

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Definitions:

Accounts Payable

Liabilities representing amounts owed to creditors for goods and services received but not yet paid for.

Retired

In accounting and finance, this term often indicates that an asset has been taken out of service or that a debt instrument, like a bond, has been paid off and is no longer in circulation.

Bonds Payable

Bonds payable refers to the amount of money a company owes to holders of its bonds, representing a long-term debt obligation.

Credit Cash

An accounting entry that represents an increase in cash or cash equivalents, indicating funds being added to the company’s assets.