Which of the Following Is Not an Example of a Nontrade

question 36

Multiple Choice

Which of the following is not an example of a nontrade receivable?

• A) amounts arising from sale of goods or services
• B) dividends and interest receivable
• C) claims against insurance companies for losses suffered
• D) amounts owing from a purchaser on sale of capital

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Definitions:

Inflation Rates

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, usually measured over a specific period of time.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time, indicating the rate at which purchasing power is falling.

Money Demand

The desired holding of financial assets in the form of money; that is, cash or bank deposits.

Price Level

Price level is the average of current prices across the entire spectrum of goods and services produced in the economy, indicating inflation or deflation.