Match Each Description to the Appropriate Term (A-D)

question 163

Multiple Choice

Match each description to the appropriate term (a-d) . Each term may be used more than once.
-This method focuses on the balance sheet.

• A)Direct write-off method
• B)Aging of receivables method
• C)Percent of sales method
• D)Allowance method

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Definitions:

Utility-maximizing

The economic principle that individuals or firms seek to get the highest satisfaction or profit from their resources and choices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.

Law of Diminishing

The principle that states that as one input variable is incrementally increased, there will be a point at which the added output per unit of input will start to decrease, holding all other inputs constant.

Price-elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in its price.