Which of the Following Statements Is True of the Economic

question 111

Multiple Choice

Which of the following statements is true of the economic environment of a business?

• A) It is affected by customer satisfaction.
• B) It reduces the hassles associated with acquiring manpower.
• C) It is affected by corruption.
• D) It prevents customers from turning into loyal advocates.

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Definitions:

Net Accounts Receivable

The total amount of money owed by customers for purchases made on credit, minus any provision for doubtful accounts.

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Bad Debt Expense

An expense recorded to account for receivables that are not expected to be collected, reflecting credit losses in the financial statements.

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.