Which of the Following Terms Best Describes a Day Trader

question 101

Multiple Choice

Which of the following terms best describes a day trader?

• A)Speculator
• B)Long-term investor
• C)Money market maker
• D)Buy-and-hold mentality
• E)Illegal gambler

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Definitions:

Note Receivable

A financial asset representing a written promise for the repayment of a specific amount of money, plus interest, by a debtor to the lender at a future date.

Accounts Receivable Subsidiary Ledger

An Accounts Receivable Subsidiary Ledger is a detailed ledger that contains individual accounts for all debtors, tracking their sales on credit and payments.

General Ledger

The general ledger is the primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions into accounts for financial statements.

Allowance for Doubtful Accounts

a contra-asset account that estimates the portion of accounts receivable that may not be collectible.