If a Country Were to Have a Gini Coefficient of 0.95

question 7

Multiple Choice

If a country were to have a Gini coefficient of 0.95, it would be a _________ country.

• A) Very equal country
• B) Slightly equal country
• C) Very unequal country
• D) Slightly unequal country

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the appropriate periods.

Allowance for Doubtful Accounts

This is a subsidiary asset account created to approximate the amount of accounts receivable that could potentially be non-collectable.

Bad Debts Expense

An expense account reflecting estimated uncollectible amounts from customers for credit sales made in a specific period.

Aging of Accounts Receivable

A process of categorizing accounts receivable according to the length of time an invoice has been outstanding.