An Account Receivable Represents

question 95

Multiple Choice

An account receivable represents

• A) an asset with long-term use or value, such as land, buildings, and equipment.
• B) an amount due from a customer who has purchased goods on credit.
• C) an expense, such as rent, that is paid before the upcoming period in which it is due.
• D) a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
• E) an asset that can or will be converted to cash within the following year.

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Definitions:

Weak-Form Efficient

A form of market efficiency where all past trading information is already reflected in stock prices, implying that technical analysis cannot consistently produce excess returns.

Capital Market Efficiency

Capital Market Efficiency is a theory that suggests markets are efficient in processing information, and thus, security prices at any time fully reflect all available information.

Competition

The rivalry among businesses or within markets for customers, which can influence prices, product quality, and innovations.

Market Participants

Entities or individuals involved in trading or investing in financial markets, including buyers, sellers, and intermediaries.