A Fixed Input Is One

question 144

Multiple Choice

A fixed input is one:

• A) that exists in nature, and there is only so much of it.
• B) that can be used for one thing only.
• C) that can never produce more or less in any period.
• D) whose quantity cannot be changed in the short run.

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Definitions:

Uncollectible Receivables

Accounts receivable that cannot be collected from customers, often recognized as a bad debt expense.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or disposal.

Allowance

In accounting, a reduction from the gross amount of receivables to reflect the estimated uncollectible amounts; in budgeting, an allocated amount for specific expenses.

Doubtful Accounts

Accounts receivable that a company does not expect to collect in full, often leading to an allowance for doubtful accounts as a contra asset on the balance sheet.