What Is the Process Through Which a Customer's Payment Is

question 21

Multiple Choice

What is the process through which a customer's payment is posted to its account and the outstanding invoices are cleared as paid?

• A) payment pattern monitoring
• B) aging of accounts receivable
• C) cash application
• D) just-in-time system
• E) none of the above

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Definitions:

Aggregate Demand And Supply Model

An economic model that explains price levels and the production of goods and services through the relationship between aggregate demand and supply.

Short-Run Phillips Curve

Describes the inverse relationship between the rate of inflation and the unemployment rate over a short period.

Rational Expectations

The theory that people optimally use all the information they have, including information about government policies, when forecasting the future.

Sacrifice Ratio

A measure of the economic cost associated with reducing inflation, often calculated as the percentage loss in output per percentage point decrease in inflation.