The Right to Receive Money in the Future Is Called

question 80

Multiple Choice

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

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

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Definitions:

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based on a simple calculation without compounding.

360-Day Year

An accounting method where the year is assumed to have 360 days, simplifying interest calculation by using 30-day months.

Ordinary Simple Interest Rate

An interest rate calculation where interest is only earned on the original principal, not on accrued interest.

360-Day Year

An accounting practice that simplifies interest calculations by assuming a year has 360 days.