The Right to Receive Money in the Future Is Called

question 114

Multiple Choice

The right to receive money in the future is called a(n)

• A)account payable.
• B)account receivable.
• C)liability.
• D)revenue.

---

Definitions:

Passage of Time

Refers to the progression of time and its implications, often related to depreciation, amortization, and other time-sensitive accounting practices.

Ignores Salvage Value

This term refers to the accounting practice where the potential residual value of an asset at the end of its useful life is not considered in depreciation calculations.

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Double Declining-balance

An accelerated depreciation method that counts the expense twice as fast as the straight-line method, reducing the value of an asset more quickly.