The Likelihood of Loss Because of the Failure of the Other

question 66

Multiple Choice

The likelihood of loss because of the failure of the other party to fully pay the amount owed is called

• A) accounting risk.
• B) bad debts.
• C) credit risk.
• D) currency risk.

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Definitions:

Initial Cash Outlay

The initial amount of money spent to make an investment or start a project, not counting ongoing expenses.

Fixed Costs

Costs that do not vary with the level of production or business activity.

Quantity of Output

The total amount of goods or services produced by a company, sector, or economy within a specified period.

Costs

The expenditure incurred by a business in the process of producing or providing goods or services.