Accounts Receivable Consists of the Credit of the Business

question 39

Multiple Choice

Accounts receivable consists of the credit of the business. It can take the form of which of the following?
I. Trade credit
II. Consumer credit

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

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Definitions:

Prestige Pricing

A pricing strategy where items are priced higher than their actual value to invoke a sense of exclusivity or luxury.

Demand-oriented

A pricing strategy focused on consumer demand factors; prices are set at levels that are believed to stimulate demand.

Pricing Approach

A pricing approach refers to the strategy a business employs to set the prices for its products or services, considering factors like cost, demand, and competition.

Skimming Pricing

A pricing strategy involving setting high initial prices for a new product to maximize revenue layer by layer from segments willing to pay the high price.