A Contra-Asset Account Used to Reduce Accounts Receivable to Its

question 78

Short Answer

A contra-asset account used to reduce accounts receivable to its net realizable value is known as a(n) ____________________.

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Definitions:

MPC

Marginal Propensity to Consume, the proportion of additional income that a consumer spends on purchasing goods and services, rather than saving.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, indicating the size of its economy.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

MPC

Marginal Propensity to Consume, the fraction of additional income that is spent on consumption.