Figure 13-1 -Refer to the FigurE13-1. If the World Interest Rate Equals

question 143

Multiple Choice

Figure 13-1

-Refer to the FigurE13-1. If the world interest rate equals 6 percent, what is the net capital outflow?

• A) -$4000
• B) -$2000
• C) $2000
• D) $4000

---

Definitions:

Accounts Receivable

Accounts receivable refers to the funds that a company's customers owe it for products or services that have already been provided but for which payment has not yet been received.

Bad Debt Expense

The estimated amount of accounts receivable that will not be collected, recognized as an expense.

Gross Profit

The gap between sales income and the expense of sold products prior to subtracting costs for overhead, employee salaries, taxes, and interest.

Current Assets

Resources anticipated to be exchanged for cash, disposed of, or utilized within a 12-month period or the length of the operating cycle, whichever is greater.