A Promise Received from a Business's Customers to Pay for Goods

question 28

Multiple Choice

A promise received from a business's customers to pay for goods and services that they received from the business is called a(n) :

• A) account receivable.
• B) account payable.
• C) revenue.
• D) expense.

---

Definitions:

Required Return

Required Return is the minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

Stock Price

The cost of purchasing a share of a company as quoted on the stock exchange.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to its shareholders.

Required Return

The minimum return that an investor expects to receive from an investment to compensate for its risk.