Examlex
Which of the following is an example of an automatic stabilizer?
Increase in Accounts Receivable
A situation where the amount of money owed by customers to a company grows due to sales on credit outpacing payments received.
Credit Sales
Sales made by a business where the payment is to be received at a later date, extending credit to customers.
Accounts Receivable
Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.
Allowance for Doubtful Accounts
A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.
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