The Receivable That Is Usually Evidenced by a Formal Instrument

question 40

Multiple Choice

The receivable that is usually evidenced by a formal instrument of credit is a(n)

• A) trade receivable.
• B) note receivable.
• C) accounts receivable.
• D) income tax receivable.

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Definitions:

Capital

Wealth in the form of money or assets, used in the production of more wealth.

Depression

An extended period of significant decline in economic activity across an economy, characterized by high unemployment, low consumer spending, and reduced industrial output.

Full Employment

A situation in an economy where all available labor resources are being used in the most economically efficient way, often characterized by the absence of cyclical unemployment.

Unemployment Rate

The statistic representing the percentage of the labor force that is out of work but seeking employment.