Value Added Is

question 17

Multiple Choice

Value added is

• A)the sum of all income earned by resource suppliers
• B)actual investment minus planned investment
• C)any payment of income that adds to the domestic spending stream
• D)the value of a product minus the cost of materials
• E)the increase in the value of a financial asset such as a stock or bond

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Definitions:

Operating Expense

Expenses incurred during the normal operation of a business, excluding costs related to production or direct services.

Allowance for Doubtful Accounts

A contra-asset account that estimates the amount of receivables that may not be collectible.

Accounts Receivable

Funds that are owed to a company by customers for goods or services delivered or used but not yet paid for.

Bad Debt Expense

An expense recognized when a company determines that a customer's debt is no longer collectible.