Suppose That a College Professor Is Creating an Exam in Her

question 359

Multiple Choice

Suppose that a college professor is creating an exam in her university office. Which of the following would be an example of a factor of production used by the professor? (i)
The professor's time
(ii)
A computer software program into which the professor types the exam questions
(iii)
The physical space of the professors office where she works when creating the exam
(iv)
The interest on the professor's home mortgage

• A)(i) only
• B)(i) and (ii) only
• C)(i), (ii), and (iii) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Allowance Method

The allowance method is an accounting technique used to estimate and account for potential credit losses on accounts receivable, recognizing them as an expense before they occur.

Direct Write-off Method

An accounting technique for recognizing bad debts where specific uncollectible accounts are directly written off against income when deemed unrecoverable.

Aging of Receivables Method

An accounting technique used to estimate the amount of and provision for doubtful accounts by categorizing receivables according to the length of time they have been outstanding.

Direct Write-off Method

An accounting method in which uncollectible accounts receivable are directly written off against income at the time they are deemed irrecoverable.