Economists and Accountants Both Include Forgone Income as a Cost

question 79

True/False

Economists and accountants both include forgone income as a cost to a small business owner.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Sales

The total amount charged customers for merchandise sold, including cash sales and sales on account.

Interest-bearing Note

An interest-bearing note is a debt instrument in which the borrower agrees to pay the lender interest in addition to repaying the principal amount borrowed.

Interest Revenue

Income earned on investments like bonds, savings accounts, and other interest-bearing securities.