Retired Persons Travel by Bus and Automobile More Frequently Than

question 12

Multiple Choice

Retired persons travel by bus and automobile more frequently than do business executives, who more commonly use air travel. An economic explanation for this would be that

• A) business executives have more time to travel.
• B) it is more important for retired persons to save time.
• C) business executives value their time more highly.
• D) retired persons have more money than do business executives.

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Definitions:

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, usually to encourage prompt payment.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra-revenue Account

is an account that is deducted from gross revenues to arrive at net revenue, examples include sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a debit to the sales returns account and a credit to accounts receivable or cash.