The Demand for a Productive Resource Is Said to Be

question 171

Multiple Choice

The demand for a productive resource is said to be "derived" because the demand for the factor

• A) depends on the demand for the product it helps to produce.
• B) depends on the demand for a complementary factor.
• C) is derived from the state of the economy.
• D) is derived from government policy.

---

Definitions:

Estimated Uncollectible

An accounting term for the prediction of the amount of receivables that will not be collected from customers, also known as allowance for doubtful accounts.

Total Assets

The sum of all current and non-current assets that a company owns, representing the total resources available to the business for use.

Allowance Method

An accounting technique that estimates and anticipates uncollectible accounts receivable and bad debts by establishing an allowance for doubtful accounts.

Bad Debts Expense

An expense recognized on a company’s income statement, representing the amount of accounts receivable that is not expected to be collected due to customers' inability to fulfill financial obligations.