Someone Who Has to Decide Whether to Receive $100 Now

question 257

Multiple Choice

Someone who has to decide whether to receive $100 now or $100 one year from now will probably choose _____, since there is a(n) _____ in waiting to use money.

• A)one year from now; benefit
• B)now; opportunity cost
• C)one year from now; opportunity cost
• D)now; benefit

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Definitions:

Average Accounts Receivable

The average amount of money owed to a company by its customers over a specific period.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base amount from the same statement.

Comparative Income Statement

A financial statement that compares income, expenses, and net earnings over different periods to highlight trends and performance improvements or declines.

Administrative Expenses

Expenses related to the general operation of a company, including salaries of executives, office supplies, and legal and financial fees.