The Asset Created by a Business When It Makes a Sale

question 120

Multiple Choice

The asset created by a business when it makes a sale on account is termed

• A) accounts payable
• B) prepaid expense
• C) unearned revenue
• D) accounts receivable

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

International Asset Transactions

The sale, trade, or transfer of ownership rights to either real or financial assets, including currency, across international borders.

Trade Deficits

An economic measure where a country's imports exceed its exports over a certain period, indicating an outflow of domestic currency to foreign markets.

Capital and Financial Account

Components of a country's balance of payments, recording the transactions of assets and liabilities, such as direct investments, portfolio investments, and other investments across borders.