Which of the Following Statements Is True Regarding Accounts Receivable

question 62

Multiple Choice

Which of the following statements is true regarding accounts receivable?

• A) It is evidenced by a chattel paper or an instrument.
• B) It falls under the category of intangible collaterals.
• C) In the context of defining collateral, accounts receivable is used as a catchall phase for interests not otherwise covered unless they are specifically excluded.
• D) It includes stocks, bonds and other investment securities.

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Definitions:

Marginal Revenue Product

Incremental income earned by utilizing one more unit of a resource, like labor or capital.

Media Hype

The excessive promotion or sensationalism of news stories, products, or events in the media.

Income Distribution

The way in which a nation's total GDP is distributed amongst its population or the distribution of income among individuals or households of a country.

Marginal Productivity Theory

An economic theory that relates the addition of a unit of labor or capital to the production process to the incremental increase in outputs.